After stablecoin push, Stripe acquires crypto wallet developer Privy

Stripe has acquired Privy, a cryptocurrency wallet infrastructure developer, for an undisclosed amount, highlighting the global payment processor’s growing pivot toward digital assets.

Privy confirmed the acquisition on Wednesday in an announcement on social media that it will continue to operate as an independent product embedded within the Stripe ecosystem.

As part of Stripe, Privywill “keep building for developers building on crypto rails [but] now with more resources, flexibility, and firepower,” the company said.

Bloomberg initially reportedon the acquisition, though no financial terms were disclosed.

While not widely known in the crypto space, Privy provides infrastructure for companies developing digital asset wallets. The company says its technology supports more than 50 million crypto wallets worldwide.

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Stripe eyes $250 billion stablecoin market

Six years after pulling back from crypto, Stripe made a major return in October last year by allowing merchants to accept stablecoin payments through USDCUSDC$0.9997USDCChange (24h)0.02%Market Cap$52.17BVolume (24h)$6.56BView More.

Since then, its push into stablecoin payments has gained momentum. AsCointelegraph recently reported, Stripe has rolled out stablecoin accounts to clients in over 100 countries.

As of May 7, Stripe users can send and receive US dollar-pegged stablecoins much like they would with traditional bank accounts.

Stripe co-founder and President John Collison told Bloomberg that, based on his conversations with global financial institutions, banks are showinggrowing interest in stablecoins.

“Banks are very interested in how they should be integrated with stablecoins into their product offerings as well,” said Collison.

However, not everyone believes traditional banks will be quick to embrace stablecoins.

NYU professor Austin Campbellrecently claimed that the US banking lobby is “panicking” over yield-bearing stablecoins, which could disrupt the industry’s business model.

According to Campbell, banks fear their business could be “harmed” if stablecoins begin paying interest.

Related:From debanking to a banking arms race: The rise of stablecoins

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