Alchemy and Privy Innovate On-chain Finance UX Through Technical Integration: A Future Without Gas Fees and Seed Phrases

On April 28, 2026, at the CoBuild event held in Soho, New York, blockchain infrastructure leaders Alchemy and Privy unveiled a deep technical integration. This collaboration aims to remove the friction users experience in on-chain finance by combining Privy's seamless onboarding technology with Alchemy's powerful account abstraction stack.

The CoBuild event redefined cryptocurrency as next-generation financial infrastructure rather than just an investment vehicle through a session titled 'On-chain Infrastructure: New Settlement Rails.' At the event, Alchemy discussed network architecture and privacy protection technologies with partners, presenting practical ways for on-chain finance to replace institutional financial settlement systems.

The biggest barrier to on-chain finance is that users must directly hold native tokens and manage gas fees for transactions.

This integration solves this problem by directly porting Alchemy's gas sponsorship (Paymasters) functionality into Privy's wallet environment. Users no longer need to purchase separate tokens to pay for gas fees, and service providers can cover costs or allow payments in stablecoins, drastically improving the user experience.

Privy's Role: Security and Embedded Onboarding

Acquired by Stripe in June 2025, Privy is a key player providing enterprise-grade security and user-friendly wallet infrastructure. Through Privy's embedded wallets, users can sign up using familiar methods such as email, social login, or Passkeys while securely maintaining self-custody of their assets.

• Securing enterprise-grade reliability through the renewal of SOC 2 Type II security certification.
• Supporting multi-chain wallet infrastructure through collaboration with the Solana Developer Platform (SDP).
• Implementing an embedded account system that allows secure key management without complex seed phrases.

As the technical engine of this integration, Alchemy provides smart account infrastructure based on ERC-4337 and ERC-7702 standards. This enables programmable features such as Session Keys and Batch Transactions, reducing the hassle of signing every time and allowing for the automation of complex financial transactions.

Christian Rau of Mastercard participated in this CoBuild session, suggesting that traditional financial giants are paying attention to the on-chain technology stack. An improved user experience is an essential prerequisite for institutional-grade settlement systems to actually operate on the blockchain, creating synergy with the reliability of Alchemy's infrastructure, which has processed over $4 trillion in on-chain transactions.

As of 2026, the embedded wallet market is seeing technological advancement with various players like Openfort and Turnkey competing alongside Privy. In particular, the rise of 'Agentic' wallets, where AI agents autonomously use Alchemy's infrastructure to perform financial tasks without human intervention, is becoming a new growth driver for this market.

The collaboration between Alchemy and Privy is expected to serve as a foundation for expansion into the Solana ecosystem and AI-based financial services. Alchemy recently established a $20 million Solana fund to accelerate ecosystem expansion, which will serve as a catalyst for on-chain finance to establish itself as a universal infrastructure not limited to a specific chain.

In conclusion, this technical integration is a significant milestone as blockchain technology enters the 'invisible' stage where it is hidden from the user's view. As complex technical barriers are removed, on-chain finance will move toward true mass adoption, serving as a starting point for redefining the standards of future financial systems.