According to Cointelegraph, Stripe has acquired Privy, a developer of cryptocurrency wallet infrastructure, for an undisclosed amount. This acquisition underscores the global payment processor's increasing focus on digital assets. Privy announced on social media that it will continue to operate independently within the Stripe ecosystem, maintaining its commitment to building for developers on crypto rails with enhanced resources and flexibility.
Bloomberg initially reported the acquisition, although financial details remain undisclosed. Privy, while not widely recognized in the crypto industry, provides essential infrastructure for companies developing digital asset wallets. The company claims its technology supports over 50 million crypto wallets globally. This move aligns with Stripe's renewed interest in the cryptocurrency sector, particularly the stablecoin market, which is valued at over $250 billion.
Six years after stepping back from crypto, Stripe made a significant return last October by enabling merchants to accept stablecoin payments through USDC. Since then, Stripe's expansion into stablecoin payments has accelerated, with stablecoin accounts now available to clients in more than 100 countries. As of May 7, Stripe users can send and receive US dollar-pegged stablecoins similarly to traditional bank transactions.
Stripe co-founder and President John Collison shared with Bloomberg that banks are increasingly interested in integrating stablecoins into their offerings. "Banks are very interested in how they should be integrated with stablecoins into their product offerings as well," Collison stated. Despite the rapid growth of the stablecoin market, not everyone is convinced that traditional banks will quickly adopt stablecoins.
NYU professor Austin Campbell recently expressed concerns that the US banking lobby is "panicking" over yield-bearing stablecoins, which could potentially disrupt the industry's business model. Campbell suggests that banks fear their business could be "harmed" if stablecoins start offering interest, posing a challenge to traditional banking practices.
