Privy
Privy is a financial technology company, with the legal name Horkos, Inc., that provides developers with an application programming interface (API)-driven platform for integrating cryptocurrency functionality into applications. Its infrastructure focuses on embedded self-custodial wallets, user onboarding, and programmable key management. In late 2025 or early 2026, the company was acquired by the financial infrastructure company Stripe, with Privy's team and product continuing their operations under the new parent company. [1]
Overview
Privy builds wallet infrastructure that allows developers to integrate cryptocurrency and stablecoin features into consumer and enterprise applications. The platform is designed to bridge traditional web2 user experiences with web3 functionalities, simplifying the process of onboarding users onto blockchain-based systems. Developers use Privy's tools to provision self-custodial wallets, manage user authentication, and enable transactions on various blockchains. [2] [1]
The system's core design philosophy centers on user control and security, achieved through a model that combines distributed key sharding with hardware-isolated Trusted Execution Environments (TEEs). This architecture ensures that complete cryptographic keys are never held by Privy or the application developer, existing only within secure hardware during transaction signing. This provides end-users with self-custody over their assets. [3] [4]
Privy offers a flexible framework that includes both out-of-the-box UI components for rapid integration and low-level API access for fully customized, white-labeled implementations. The infrastructure supports multiple wallets per user and is compatible with a wide range of blockchain networks, including those compatible with the Ethereum Virtual Machine (EVM) and Solana Virtual Machine (SVM). [2]
Funding
On November 21, 2023, Privy announced an $18 million Series A funding round led by Paradigm, with participation from Sequoia Capital, BlueYard Capital, and Archetype. At the time, the company reported that its infrastructure had onboarded over one million users, was processing millions of transactions per month, and had handled over 10 billion Remote Procedure Call (RPC) requests in the preceding two-month period. Following the investment, Matt Huang, a partner at Paradigm, joined Privy's board of directors. [5]
On March 19, 2025, the company announced a subsequent funding round led by Ribbit Capital, with participation from previous investors Sequoia Capital, Paradigm, BlueYard, and new investor Coinbase. This round brought Privy's total funding to over $40 million. At the time of the announcement, Privy stated its infrastructure supported over 50 million user accounts and secured billions of dollars in assets for hundreds of development teams. [6]
Acquisition by Stripe
In late 2025 or early 2026, Privy announced it had been acquired by financial infrastructure company Stripe. The announcement stated that the Privy team and product would remain intact, leveraging Stripe's resources to scale its offerings. [1]
Technology
Privy's technology is structured around three main pillars: a unified authentication system, a flexible wallet infrastructure, and a granular control mechanism for managing digital assets.
Authentication
Privy's authentication system is designed to verify the identities of both end-users and applications to control access to wallets and on-chain actions. [7]
Unified User Identity
At the core of the user management system is the Privy Decentralized Identifier (DID), a unique ID assigned to each user. This DID acts as a stable identifier that consolidates a user's on-chain and off-chain activities. All of a user's linked authentication methods and wallets are aggregated under a central user object, which also stores custom metadata and system information. This model allows for a consistent user profile, regardless of the login method used. [8]
Authentication Methods
The platform supports a hybrid model that combines familiar web2 login methods with web3-native ones. Users can sign in or sign up via:
- Email or SMS with a one-time passcode
- Passkeys (WebAuthn standard)
- Social logins, including Google, Apple, Twitter, Discord, and Farcaster
- Any OIDC-compliant OAuth system
- Connection of an existing crypto wallet using Sign-In with Ethereum or Sign-In with Solana
Users can link multiple methods to a single account, and applications can enforce Multi-Factor Authentication (MFA) for sensitive wallet actions to enhance security. [9]
Token System
Privy uses a standardized set of JSON Web Tokens (JWTs), signed with the ES256 algorithm, for session management and secure data transfer.
- Access Tokens: Short-lived tokens with a default one-hour validity. They are sent with frontend requests to an application's backend to verify an active, authenticated user session. The Privy SDK can manage their refresh cycle automatically.
- Refresh Tokens: Long-lived, opaque credentials with a default 30-day validity. They are stored securely by the SDK and used to obtain new access tokens without requiring the user to log in again.
- Identity Tokens: Tokens containing user-specific data, such as linked accounts and metadata. With a default 10-hour validity, they allow a backend to verify user information without making additional API calls to Privy. These tokens must be explicitly enabled and refresh automatically when user data changes. [10]
Wallet Infrastructure
Privy provides a programmable wallet infrastructure that supports transactions across numerous blockchains. [4]
Wallet Types
- Embedded Wallets: These are self-custodial wallets provisioned directly within a developer's application. Keys are managed using distributed sharding and are not exposed to the application or Privy, providing users with full control and the ability to export their keys. These wallets can be pre-generated and linked to a user's account (e.g., their email) before their first login. [4]
- External Wallet Connectivity: Users can connect existing third-party wallets, such as MetaMask, Phantom, or Rainbow, to applications built on Privy. This allows them to bring their existing assets and on-chain identities to the platform. [4]
- Programmatic Wallet Fleets: Developers can use Privy's API to programmatically create and manage large numbers of wallets for business purposes like treasury management. These fleets can be configured with security policies, pre-approved signers, and automated gas management. [4]
Blockchain Compatibility
The platform is designed to be chain-agnostic and supports raw cryptographic signing for any blockchain using the secp256k1 or Ed25519 signature curves. It offers native support for all EVM-compatible chains (like Ethereum and Base) and SVM-compatible chains (like Solana). It also supports a broad range of other networks, including Bitcoin and its L2s, Stellar, Tron, Cosmos, Sui, NEAR, and TON. [11]
Management and Controls
Privy offers a sophisticated system for defining permissions and managing transactions, enabling businesses to implement complex security and operational workflows.
Authorization Model: Owners and Signers
Access to resources like wallets and policies is governed by a role-based model of "Owners" and "Signers." [12]
- Owners: Have full and ultimate administrative control over a resource. Their permissions include updating policies, managing other owners and signers, transferring ownership, and exporting private keys.
- Signers: Have scoped, limited permissions to perform specific actions, such as signing transactions. They cannot alter policies, manage permissions, or export keys.
These roles can be assigned to three types of entities:
- Users: An end-user, represented by their Privy DID, can be an owner or signer, enabling standard self-custodial wallet use cases.
- Authorization Keys: These are P-256 cryptographic keys controlled by a server or device. They enable programmatic actions via signed API requests, facilitating automated workflows.
- Key Quorums: A composite entity made of multiple users and/or authorization keys. A quorum requires a configurable threshold of signatures (m-of-n) to approve an action, enabling multi-party custody and other shared control models. [13]
Transaction Management
The platform includes a suite of tools for businesses to manage digital assets, payments, and subscriptions securely. [11]
Policy Engine
Wallet owners can configure a granular policy engine to enforce security rules on transactions. These rules can restrict actions based on parameters such as:
- Asset type and amount
- Recipient address (e.g., allowlists)
- Blockchain network
- Gas fee limits
- Smart contract functions and parameters [11]
Gas Management
Privy offers a centralized gas sponsorship system that allows businesses to pay transaction fees on behalf of their users. A business can maintain a single gas tank and apply policy rules to control how funds are allocated across its wallet fleet, simplifying the user experience by abstracting away gas payments. [11]
Monitoring and Reliability
To help businesses synchronize their internal ledgers with on-chain activity, Privy provides real-time updates through webhooks for events like deposits, withdrawals, and transaction status changes. The system also supports idempotency keys for API requests to prevent duplicate actions during retries. [11] [8]
Partnerships and Investors
Privy is backed by several prominent venture capital firms. Its lead investors include Paradigm and Ribbit Capital. Other participants in its funding rounds include Sequoia Capital, BlueYard Capital, Archetype, and Coinbase Ventures. [5] [6]
The company is a member of several industry groups and lists partnerships with organizations such as the RWA Consortium, AllUnity, B3 Open Gaming, and Zora. [2]