Payment Giant PayPal Invests In L1 Stable To Expand PYUSD’s Utility
Highlights
- PayPal invests funds in Stable in order to make PYUSD applicable to numerous blockchain systems.
- Making payments across borders using PYUSD is made easy through Stablechain.
- PayPal and Stable executives identify new and expanding markets as key factor of growth for stablecoins.
PayPal has invested in Stable, a stablecoin-focused blockchain. The move is the latest step by the payment settlement company in further exploring the digital asset space. The move allows PayPal’s own stablecoin, PayPal USD (PYUSD), to be used on Stable’s network for payments and financial transactions.
PayPal Ventures Fuels Stable to Boost PYUSD Adoption
According to the media statement, PayPal Ventures, the company’s venture arm, participated in Stable’s latest funding round. Stablechain, which is the name of the blockchain by Stable, allows the effortless use of stablecoins for payment settlements.
It utilizes the USDT as its native gas token. This infrastructure makes the network suitable for peer-to-peer payments, remittances, and cross-border payments. By linking with Stable, PayPal aims to unlock new payment use cases beyond its own platforms. In addition, PayPal plans to let merchants accept over 100 cryptocurrencies for payments.
This move would enable the transfer of the token among networks to become easier and would increase its use in day-to-day payments. PYUSD is pegged 1:1 to the U.S. dollar and it is issued by Paxos Trust Company. Its reserves are backed by U.S. Treasuries and cash equivalents.
PayPal, Stable Leaders Eye Emerging Markets and Future Digital Payment Products
Sam Kazemian, recently named CTO of Stable, said both teams share the vision of advancing digital payments. He added that PayPal’s long experience with fiat transfers makes it an ideal partner for stablecoin adoption.
David Weber, Head of PYUSD Ecosystem at PayPal, said the collaboration with Stable will help drive PYUSD’s use with Bitcoin, Ethereum and other blockchain systems. Both companies are also considering future products centered on payments and commerce.
PayPal Ventures partner Amman Bhasin said the investment reflects a focus on emerging markets, where stablecoins can have strong impact. He noted that Stable’s strategy of using trusted distribution partners gives it an edge in scaling adoption quickly.
Stable recently raised $28 million in seed funding from investors including Bitfinex and Hack VC. It also announced several new executive hires, including co-CEO Brian Mehler and CTO Kazemian. Additional product updates are scheduled later in the year based on the roadmap.
The partnership underscores the partnership between digital currency payment providers and blockchain firms in an effort to expand the use of cryptocurrencies.
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