PayPal and Stable Collaborate to Position PYUSD as Global Payment Powerhouse

PayPal Ventures, the investment arm of PayPal Holdings, Inc., has made a strategic investment in Stable, a Layer 1 blockchain network focused on stablecoin transactions. This partnership aims to expand the utility of PayPal USD (PYUSD), a U.S. dollar-backed stablecoin issued by Paxos Trust Company, by integrating it into Stable’s blockchain ecosystem. The collaboration leverages LayerZero’s cross-chain interoperability technology to enable seamless, low-cost transfers of PYUSD across multiple blockchain networks, enhancing its accessibility for global commerce and cross-border payments PayPal Invests in Stablecoin-Focused Layer 1 'Stable' to Expand ...^[1].

Stable’s blockchain, designed to prioritize speed and cost efficiency, will support PYUSD transactions through its native gas token, USDT. The integration allows users to conduct commerce-related activities, such as peer-to-peer payments and remittances, with near-instant finality and reduced fees. Sam Kazemian, Stable’s newly appointed CTO, emphasized the alignment between PayPal’s digital payment expertise and Stable’s vision for frictionless financial transactions, stating that the partnership could drive the next “true advancement in cross-border payments” PayPal Invests in Stablecoin-Focused Layer 1 'Stable' to Expand ...^[1].

A key component of the collaboration is the integration of LayerZero’s Stargate Hydra bridge, which enables programmatic blockchain bridging. This infrastructure allows PYUSD to maintain full fungibility across networks, ensuring that users can transfer the stablecoin between chains without relying on centralized platforms. David Weber, Head of PYUSD Ecosystem at PayPal, highlighted that the integration removes traditional barriers to adoption, unlocking new use cases such as cross-chain compatibility and onramp/offramp capabilities for PYUSD PayPal Invests in Stablecoin-Focused Layer 1 'Stable' to Expand ...^[1].

The expansion of PYUSD’s blockchain presence has accelerated in recent months. Through LayerZero, the stablecoin is now available on nine new blockchains, including Tron, Avalanche, and Sei, bringing its total network count to 13. This includes native deployments on Ethereum, Solana, and Stellar, as well as permissionless versions like PYUSD0 on Tron and other chains. The move positions PYUSD to compete with industry leaders like Tether’s USDT and Circle’s USDC, which operate on 12 and 25 blockchains, respectively PayPal Expands PYUSD Stablecoin to 9 New ...^[4].

PayPal’s strategic focus on expanding PYUSD’s utility is reflected in its growing market presence. Since its launch in August 2023, PYUSD’s circulating supply has surged from $520 million to $1.3 billion by September 2025. The stablecoin now ranks 11th in market capitalization, trailing behind USDT and USDC but demonstrating steady growth. Analysts attribute this expansion to PayPal’s global user base and its partnerships with platforms like Coinbase, which now offer fee-free PYUSD transactions and 1:1 redemptions PayPal and Coinbase Expand Partnership to Drive Innovation of ...^[5].

The partnership with Stable and the broader blockchain expansion underscore PayPal’s commitment to positioning PYUSD as a foundational asset for digital commerce. Amman Bhasin, Partner at PayPal Ventures, noted that Stable’s focus on scalable, dollar-based payments in emerging markets aligns with PayPal’s goal to drive real-world adoption. The company has also outlined plans to explore future products centered on stablecoin utility, including enhanced payment solutions and developer tools PayPal Invests in Stablecoin-Focused Layer 1 'Stable' to Expand ...^[1].

As regulatory frameworks for digital assets continue to evolve, PayPal emphasizes compliance in its PYUSD strategy. The stablecoin is fully backed by U.S. dollar deposits, Treasuries, and cash equivalents, with reserves audited by Paxos. However, the company cautions that PYUSD is not FDIC-insured and remains subject to risks such as network vulnerabilities and regulatory changes. Despite these challenges, PayPal’s investment in Stable and its blockchain expansion signal confidence in the long-term potential of stablecoins to reshape global financial infrastructure PayPal Invests in Stablecoin-Focused Layer 1 'Stable' to Expand ...^[1].