Stripe Acquires Privy for Enhanced Crypto Payment Integration – Coincu

Stripe and Privy have announced an acquisition agreement as of June 11, where Stripe will integrate Privy’s tech for crypto wallets with its payment offerings.

The acquisition will strengthen Stripe’s position in the crypto industry by advancing Web3 financial services, potentially impacting stablecoin and crypto wallet adoption.

Stripe’s Acquisition of Privy to Boost Web3 Payment Solutions

Stripe has acquired Privy, known for its seamless crypto wallet APIs, aiming to merge robust crypto capabilities with Stripe’s global payment systems. Henri Stern, CEO of Privy, highlights that the company’s mission is to simplify crypto integration for developers, emphasizing reduced friction in building crypto products. Post-acquisition, Privy will continue as an independent product under Stripe’s umbrella. This partnership aims to enhance Web3 adoption.

The acquisition supports easier fiat-crypto transitions via Stripe’s payment channels, expected to boost stablecoin and on-chain activities. Privy’s API infrastructure combined with Stripe’s resources will attract more developers to Web3 projects. In addition, Stripe’s decision follows its earlier USDB stablecoin-related acquisition, aligning with its digital asset strategy. This integration anticipates increased on-chain volumes for stablecoins and popular cryptocurrencies like Bitcoin and Ethereum.

John Collison, Co-founder & President, Stripe, mentioned, “In the conversations we have with [banks], they’re very interested. This is not something that banks are just kind of brushing away or treating as a fad. Banks are very interested in how they should be integrated with stablecoins into their product offerings as well.”

Ethereum Could Benefit from Stripe’s Strategic Moves

Did you know? Privy’s APIs, now backed by Stripe, could accelerate Ethereum’s adoption, paralleling PayPal’s 2021 Curv acquisition that bolstered crypto custody in mainstream finance.

According to CoinMarketCap, Ethereum’s price reached $2,761.02 with a market cap of 333.32 billion. In recent days, although experiencing a 1.63% drop over 24 hours, Ethereum’s seven-day performance gained 5.86%. Its transaction volume stands at 30.12 billion, albeit a trading volume drop to -18.85% over the last 24 hours. Notably, Ethereum has shown a significant price increase of 67.40% in the past 60 days.

Insights from the Coincu research team suggest the Stripe-Privy merger could potentially reshape the regulatory landscape with enhanced blockchain-based payment solutions.