Payments giant Stripe has agreed to acquire crypto wallet infrastructure startup Privy in an undisclosed deal that dramatically expands the company’s cryptocurrency capabilities, according to an X post on Wednesday.
This latest acquisition marks the second major crypto deal following its blockbuster $1.1 billion purchase of stablecoin platform Bridge.
The Privy acquisition positions Stripe to offer end-to-end crypto infrastructure solutions, combining Privy’s wallet integration with stablecoin payment rails.
The company capitalizes on explosive institutional adoption, which saw stablecoins settle $27.6 trillion in transactions during the first quarter of 2025 alone, more than doubling Visa’s entire 2023 settlement volume.
Privy To Power the Next Wave of Stripe Crypto Users
Privy, founded in 2021 by Henri Stern and Asta Li, has emerged as one of the key infrastructure providers that allows companies to integrate crypto wallets directly into their platforms without forcing users through the traditional friction-heavy process of creating external wallets through providers like MetaMask or Coinbase Wallet.
Collectively, it powers over 75 million accounts across more than 1,000 teams while facilitating billions in transaction volume.
The timing of Stripe’s aggressive crypto expansion also reflects broader institutional momentum and diversification toward digital assets.
In fact, according to recent cryptonews reports, blockchain technology is now in active development in 60% of Fortune 500 companies. Nearly one in five executives considers on-chain initiatives a key strategic priority, representing a 47% increase from the previous year.
This institutional embrace has been particularly pronounced in the stablecoin sector, where interest among Fortune 500 companies has tripled since 2024.
This is driven by the technology’s ability to address pressing business pain points, including high transaction fees, cross-border payment delays, and currency volatility protection.
Stripe’s crypto journey began in 2014 when it became the first major payments processor to support Bitcoin transactions.
However, the company subsequently halted Bitcoin support due to network inefficiencies and high fees before rebuilding its blockchain team in 2021.
The company’s renewed crypto ambitions accelerated in October 2024 with the launch of stablecoin payment options that achieved rapid adoption across 70 countries on their first day.
This momentum continued with May’s introduction of Stablecoin Financial Accounts, which allow companies in 101 countries to hold and transact in digital dollars.
The account currently supports Circle’s USDC and Bridge’s USDB stablecoins, with plans for additional integrations.
Strategic Infrastructure Play Addresses Growing Market Demand
This latest acquisition allows Stripe to offer comprehensive crypto infrastructure spanning wallet creation, stablecoin payments, and traditional fiat integration through a unified platform.
This end-to-end approach aligns with growing business needs. Over 81% of crypto-aware small and medium-sized businesses express interest in stablecoin adoption to address financial challenges.
Source: CoinbaseOver one-third of SMBs already use cryptocurrency, and 46% plan to adopt it within three years.
Stripe’s acquisition strategy might also be in the quest for competitive positioning as other payment giants, including Visa and Mastercard, accelerate their own crypto initiatives.
The company recently partnered with Ramp to launch stablecoin-backed corporate cards.
These cards provide businesses with cross-border payment solutions that offer faster settlements, lower fees, and built-in currency volatility protection. They initially launched in Latin American markets before expanding to Europe, Africa, and Asia.
The broader context for Stripe’s crypto expansion includes major regulatory developments that have removed previous barriers to institutional adoption.
The first quarter of 2025 witnessed unprecedented regulatory clarity. These regulatory advances have catalyzed institutional investment flows, with over 80% of institutional investors planning to increase crypto exposure throughout 2025.
The stablecoin market has been the primary beneficiary, with supply growing 54% year-over-year, while global stablecoin holders have exceeded 161 million.
Additionally, congressional momentum continues to build, with the Senate advancing the bipartisan GENIUS Act, which targets stablecoin regulation, and reintroducing the Blockchain Regulatory Certainty Act.
Stripe expects the Privy transaction to close within the coming weeks, and the startup will continue to operate as an independent product similar to the Bridge acquisition structure.
The post Stripe Bets Big on Crypto, Buying Wallet Startup Privy Amid $27.6T Stablecoin Boom appeared first on Cryptonews.
