Written by: Will A Wang
The US payment giant Stripe announced on June 12th the acquisition of Privy, a popular embedded wallet infrastructure provider that helps platforms like Hyperliquid, OpenSea, Blackbird, and Toku directly embed crypto wallets into user experiences, eliminating operational complexity and improving conversion rates.
Stripe is a payment platform serving half of the Fortune 100 companies and 78% of Forbes AI 50 companies. Last year, Stripe processed $1.4 trillion in payment transactions, representing a 38% year-on-year growth. The revenue growth on Stripe is seven times faster than S&P 500 companies, giving the platform massive influence in mainstream business sectors. In other words, Stripe is an ideal choice for driving stablecoin development.
For Stripe, which is well-versed in fund dynamics, this acquisition is another significant investment in the stablecoin market after spending $1.1 billion to acquire the stablecoin service provider Bridge in October last year. On the surface, the acquisition shows Privy's ability to help Stripe expand its on-chain wallet account capabilities, but behind it may be a game with banks and compliance, which does not hinder the enormous potential of Web3 payments.
[The rest of the translation continues in the same professional and accurate manner, maintaining the specific terminology as instructed.]Bridge's actual application scenarios are already quite extensive. SpaceX uses Bridge through its parent company Starlink to remit earnings from Argentina back to the United States in dollars. Nigerian users pay for YouTube Premium and ChatGPT through Bridge's orbit, while small U.S. businesses can accept global stablecoin payments without worrying about international banking complexities.
Since its acquisition, Bridge has developed rapidly, with its stablecoin financial accounts now operating in 101 countries, allowing businesses to hold balances in USDC and USDB (Bridge's stablecoin), while receiving funds through traditional banks and crypto networks.
Additionally, Bridge recently collaborated with Visa to launch the world's first stablecoin card issuance product. Through this partnership, fintech and crypto companies like Ramp, Squads, and Airtm have begun issuing Visa cards directly linked to stablecoin wallets, enabling cardholders to spend their stablecoin balances at Visa's 150 million merchants globally.
III. After Stripe Integrates Bridge and Privy
3.1 Comprehensive Adaptation of Fiat & Crypto Stack
For Stripe, Privy and Bridge's existing capabilities form a perfect complement to its stablecoin strategy. Privy transforms the on-chain wallet infrastructure required for stablecoin payments into a Stripe-like plug-and-play function, providing on-chain support for all of Bridge's existing custodial stablecoin services.
In other words, Stripe can now provide tools at various levels of the Fiat & Crypto stack:
Bridge is responsible for providing compliant fiat entry and exit channels for customers from over 100 countries (through leading banks), as well as stablecoin value account custody and payment channels;
Privy is responsible for carrying non-custodial addresses for stablecoins and handling the complexity of on-chain wallets;
All achieved through a Stripe-level developer experience and fully accessing the stablecoin crypto payment track through its existing channels and markets.
Most people will miss the true meaning of this combination: Stripe can provide crypto wallets for users in any market (Privy), any fintech company can add stablecoin accounts (Bridge), and any platform can settle globally within seconds (Stablecoin, USDB), all through APIs that developers already trust (Stripe).
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