DeutschPayPal has struck again. The US payment service, long a fixture in the everyday lives of millions of people, is expanding its commitment to the crypto world. Through its investment arm PayPal Ventures, the company is investing in the stablecoin startup Stable. Exact figures for the investment were not disclosed, but the signal effect is clear: PayPal is serious about digital money.
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Stable, a blockchain specializing in fast and inexpensive transactions, will also support PayPal’s own digital currency, PayPal USD (PYUSD), in the future. This means that payments with the stablecoin are no longer only possible within the PayPal ecosystem, but can also run via the Stablechain – a network that is particularly noteworthy for its low fees and high speed. In the background, there is also support from Tether, the largest provider of stablecoins worldwide.
PayPal Surprises the World of Cryptocurrencies
Sam Kazemian, Chief Technology Officer of Stable, is full of praise. “PayPal is a global leader in peer-to-peer payments. The collaboration with such an experienced partner is particularly exciting for cross-border transactions,” he explains. The goal is clear: stablecoins should no longer be considered toys for crypto nerds, but as a practical means of payment for everyday use.
Technically, Stable relies on LayerZero. This protocol enables PYUSD to be used not only within the Stablechain, but also across other blockchains. The idea: a bridge builder that connects the previously fragmented crypto world. Anyone who wants to move tokens from one chain to another today often has to take complicated detours – LayerZero wants to make this as easy as a click.
For PayPal, this is not the first foray into the crypto scene. As early as 2020, the group allowed its US customers to buy and sell Bitcoin and Ethereum. At that time, a bull market promptly followed, driven by the euphoria surrounding the entry of a traditional company into the wild crypto sector. Most recently, PayPal also opened its system for transfers to external wallets – a step that the community had long demanded.
Will PYUSD Become a Serious Player in the Crypto World?
The fact that PayPal is now rolling out its own digital currency PYUSD across other networks is a clear sign. Stablecoins are considered a link between the traditional financial system and the crypto economy. They offer stability because they are pegged to the US dollar, and at the same time the advantages of digital transactions: fast, global, inexpensive.
Whether PayPal’s step will trigger the next big boom remains to be seen. One thing is certain: the group is positioning itself strategically, while regulators in the USA and Europe are still struggling to correctly classify stablecoins. For users, it could ultimately mean that transfers abroad will no longer take days and swallow high fees, but will be completed in seconds – at a fraction of the cost.
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PayPal is thus continuing a development that once began with a simple “Buy with Bitcoin” button. Today, it is no longer about experiments, but about market share. And with Stable and Tether behind it, PYUSD could become a serious player in the race for global payment transactions. (mck)
