Stripe has taken further steps towards launching its stablecoin by acquiring a crypto wallet provider called Privy.

While Privy is not currently a leader in the crypto wallet market, it boasts 75 million user accounts and partnerships with trading platform Hyperliquid and NFT marketplace OpenSea. This acquisition will significantly expand Privy’s ecosystem.

Despite coming under Stripe’s umbrella, Privy plans to continue operating as an independent product. Both companies share a vision of bringing cryptocurrencies and fiat currencies closer together to revolutionize digital value transfer. This was announced via social media.

Crypto Progress and Stops

This deal reflects Stripe’s ongoing commitment to the digital assets sector, following its major acquisition of stablecoin issuer Bridge. Shortly after that $1.1 billion transaction, Stripe announced it would proceed with overseas trials of its dollar-backed stablecoin.

The anticipated launch comes as part of a series of crypto-related advancements and setbacks for the fintech company. Years ago, Stripe attempted to integrate bitcoin payments but later abandoned efforts due to complexity. For over a decade, Stripe has been working on launching a stablecoin.

Enterprises and Stablecoins

Momentum is growing in the digital assets space, evidenced by Stripe’s collaboration with Coinbase for receiving crypto payouts and converting fiat currencies into stablecoins like Circle’s USDC and Pax Dollar. Now, Stripe aims to launch its own stablecoin as it targets a dynamic market worth $250 billion.

Rival PayPal has already made an early move by launching its PYUSD stablecoin in Germany two years ago. Although PYUSD hasn’t gained significant market share yet, PayPal’s extensive customer base and strong connections with institutional investors could give its offering a competitive edge.

By leveraging its own substantial user base and enterprise-level products, Stripe hopes to secure a position in the digital assets space. The integration of an embedded crypto wallet will likely strengthen Stripe’s offerings further.