Vault infrastructure provider Veda is making its vaults available to developer teams building on Privy, the portfolio infrastructure company Stripe acquired last June, the two companies said Tuesday. The announcement was made during Proof of Talk 2026 at the Louvre Palace in Paris.
Until now, Veda’s safes reached the market through one-off institutional integrations. Kraken used them to launch Kraken DeFi Earn, and EtherFi used them to build its Liquid product. Each required dedicated engineering and months of coordination, the kind of dedication most companies can’t justify. The Privy integration turns that into a standard API call.
“Until now, we haven’t had a way to bring our proven vault stack to thousands of startups looking to integrate onchain revenue,” Sunand Raghupathi, co-founder and CEO of Veda, said in a statement. “Any team building on Privy can now provide its users with the same vault infrastructure that the largest crypto platforms use every day.”
Privy builds embedded crypto wallets that allow fintechs and other companies to set up easy-to-use wallets for their customers, without seed phrases or third-party apps. The company now manages more than 120 million accounts across more than 2,000 developer teams. In an interview prior to the announcement, Raghupathi described it as almost a monopoly in its category, calling it “the largest embedded wallet solution in the world.”
That reach is the point for Veda. “This is like a match made in Heaven because what Privy Veda gives access to is distribution with some of the biggest fintechs,” Raghupathi told The Block.
Beyond borrowing
The integration makes Veda the first yield provider on Privy not built around lending, Raghupathi said in the interview. Privy had previously connected credit protocols such as Aave, which he characterized as simple, single-asset solutions. Veda’s two launch vaults instead leverage diversified, multi-protocol strategies across leading EVM ecosystems, with developers free to set their own compensation on top.
The vaults support major stablecoins and Veda plans to add more allocation routes, including top lending protocols, after general availability. The company said specific configurations and live yield networks will be published in the product documentation at launch. Raghupathi told The Block that the company is eyeing return opportunities in the EVM chains and also in Solana.
Raghupathi argued that returns are becoming a standard expectation for any company that owns stablecoins for three reasons: maintaining balances, attracting new users, and taking a cut of yield as a new revenue stream. “Anyone who has stablecoins on their platform, which will ultimately be every fintech in the world, will eventually integrate yield,” he said.
The shift is already visible within Privy’s own footprint. Stablecoins now make up 70% of assets in Privy-powered wallets, up from 20% a year ago, the companies said.
Security and regulations
Amid a worrying increase in hacks within DeFi, Veda notes that it has never had a major security incident, and Raghupathi said the record is due to time in the market rather than any single security. “Our core team has been building on this space for almost five years now, and there are some lessons you can only learn with experience at scale,” he said, citing stablecoin depegs, protocol exploits and liquidity crises the team has worked through.
He did not downplay the stakes. “If I were to say that safety is my top priority, I think it would only destroy my credibility,” he said, describing it as a matter of survival for the broader category. “The design of crypto right now is incredible… and this feels inevitable unless we screw it up by taking shortcuts, not taking security seriously and just destroying the credibility of the industry.”
Veda recently hired Alberto Cuesta Cañada, a co-author of the ERC-4626 tokenized vault standard who previously led security at Optimism, as vice president of onchain security, Raghupathi told The Block. Last year it brought in TuongVy Le, previously general counsel at Anchorage and a six-year veteran of the Securities and Exchange Commission, as its own general counsel.
In terms of compliance, Raghupathi said vaults carry different obligations than the permissionless protocols below them because they are directly in front of users. Veda screens for OFAC sanctions and can limit vaults to a whitelist of approved users, useful for a fintech that doesn’t want its assets merged with those of other companies. He noted that SEC Chairman Paul Atkins recently spoke publicly about safes and said clearer rules would help the category. “In my opinion, regulation is actually very important for the success of this category,” Raghupathi said.
He also drew a line on what Veda will support. “There are some products that we simply won’t support, and those are the ones that look more like opaque, high-risk bets that aren’t worth it on a risk-return basis,” he said.
Enterprise as a ramp
For Raghupathi, the Privy deal fits into a broader bet that mainstream users will reach DeFi through apps they already trust, rather than by going onchain themselves.
“There used to be a dream that we would bring the next billion users directly on-chain,” he said. “But the reality is that’s not going to happen. What’s actually going to happen is that users are going to access these products through the apps they already trust, whether it’s their exchanges like Kraken, whether it’s their brokerage accounts.”
He pointed to Kraken DeFi Earn as evidence. According to Veda, the product has generated more than $250 million in deposits in less than four months, making it the largest DeFi earning product on the market, according to the company.
Raghupathi said success will be measured on two fronts: the range of enterprises that Veda can onboard, and the total value locked and the number of users. Neobanks are providing early traction, he said, and payments and remittance companies are likely to follow suit.
Privy CEO Henri Stern said the integration broadens what developers can build. “Providing seamless access to Veda’s vault infrastructure through Privy’s APIs means that each of our 2,000+ developer teams can now launch a yield product previously only accessible to the largest institutions in crypto,” he said in a statement.
Access to Veda Vaults for developers building on Privy is currently on the waitlist, with the general launch of the integration scheduled for next month.