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Stripe buys crypto wallet startup Privy

Payments giant Stripe is acquiring crypto wallet infrastructure startup Privy for an undisclosed fee.

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Stripe buys crypto wallet startup Privy

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The deal is part of Stripe's aggressive push back into crypto following a six year hiatus, building on its recent $1.1 billion takeover of stablecoin platform Bridge.

Founded around three years ago, Privy aims to make it easy for developers to build products on crypto rails. Through a single API, clients can spin up wallets rather than use external ones, sign transactions, and integrate any onchain system.

The firm now claims to power over 75 million accounts across more than 1000 developer teams, orchestrating billions in transactions. Among its clients are trading platform Hyperliquid and restaurant app Blackbird.

Like Bridge, the startup will operate as an independent product under Stripe.

Say founders Henri Stern and Asta Li: "Joining Stripe will accelerate our work to shape this future and provide powerful new capabilities to Stripe and Privy customers alike. Together, we can change how value moves through the Internet."

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Comments: (1)

Enrico Camerinelli

Enrico Camerinelli Supply Chain Blockchain Personal Coach at Aite Group

While the announcement signs a new encouraging validation that building programmable financial services with stablecoins is now possible, there are still improvements needed before enterprises can fully adopt the solution for their B2B transactions.

The Privy software operates on stablecoins developed by external issuers with no control over their 1:1 parity, leaving the counterparty risk to the corporate user. Converting to fiat isn't even immediate but requires users to jump through hoops: they must first integrate Privy to a third-party off-ramp provider via SDK/API; they must then complete KYC before linking bank accounts; only then Privy can sign and send crypto to the provider that then converts stablecoins to fiat and has the bank pay out actual money.

This presents a long way to go for immediate action as soon as the Stripe-Privy technical  integration is complete.

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