PayPal Ventures Backs Stablecoin Push to Expand Dollar-Based Payments in Emerging Markets

PayPal Ventures has made a strategic investment in Stable, a blockchain project backed by Bitfinex, to integrate PayPal USD (PYUSD) onto its network. The partnership aims to expand PYUSD’s utility across multiple blockchain ecosystems, leveraging Stable’s institutional-grade infrastructure. Stable, which emerged from stealth in July 2025, is a layer-1 blockchain designed for stablecoin transactions, with a focus on peer-to-peer payments, remittances, and cross-border transfers. The platform utilizes USDT as its native gas token, enabling sub-second finality and gas-free transactions, according to its FAQ.

The integration of PYUSD onto Stable’s blockchain will use LayerZero’s cross-chain interoperability technology, allowing seamless bridging between networks. PayPal Ventures partner Amman Bhasin highlighted the project’s potential in emerging markets, where reliable dollar-based payments could drive adoption. “They’re tackling the real frontier for stablecoins,” Bhasin said, noting Stable’s strategy to collaborate with trusted partners for scalability. The partnership also plans to develop onramps and offramps for PYUSD, expanding its use cases in commerce.

PayPal USD, issued by Paxos Trust Company and pegged 1:1 to the U.S. dollar, has grown to a $1.4 billion market capitalization since its launch in August 2023. David Weber, head of PYUSD’s ecosystem, emphasized the collaboration’s role in unlocking “new commerce-related use cases” and reducing friction in financial transactions. The integration aligns with PayPal’s broader strategy to enhance stablecoin adoption, particularly in markets where traditional banking infrastructure is limited.

Stable’s blockchain is closely linked to Tether’s USDT, with its architecture optimized for the stablecoin’s utility. The platform’s design eliminates the need for volatile tokens in transaction fees, streamlining user experience. While it is unclear whether USDT or USDT0 (a cross-chain liquidity stablecoin) serves as the native gas token, Stable’s focus remains on real-dollar settlements and low-cost transfers. The project recently closed a $28 million seed funding round co-led by Bitfinex and Hack VC, and it has appointed key executives, including co-CEO Brian Mehler and CTO Sam Kazemian, to advance its 2025 roadmap.

The partnership reflects PayPal’s commitment to expanding PYUSD’s reach. Sam Kazemian, Stable’s CTO, noted that the collaboration aligns with PayPal’s expertise in global payments, aiming to “drive the next true advancement in cross-border transactions.” The integration leverages Stable’s fast settlement speeds and cost efficiency, which are critical for commercial applications. Meanwhile, PayPal Ventures’ investment underscores its focus on real-world adoption, particularly in regions where dollar-backed transactions offer significant value.

Regulatory and operational risks remain inherent in digital asset use. Stable’s press release highlighted potential challenges, including network vulnerabilities, third-party reliance, and regulatory uncertainties. PYUSD, while backed by U.S. dollar reserves, is not FDIC-insured, and its redemption terms depend on authorized partners. The company also emphasized that new products require approval from the New York State Department of Financial Services (NYDFS), which has not yet been granted.

The investment marks a pivotal step for Stable as it positions itself as a major player in the stablecoin ecosystem. By integrating PYUSD, the platform aims to compete with existing solutions like USDT and USDC, offering a blend of speed, cost efficiency, and institutional support. For PayPal, the move reinforces its role in the evolving stablecoin landscape, aligning with broader trends of corporate and institutional adoption of digital assets for payments and financial services.