"Stablecoins Surge: Stripe, PayPal Drive $230B Industry"

Stablecoins, a type of cryptocurrency pegged to the value of a stable asset like the US dollar, have witnessed remarkable growth in recent years. This growth can be largely attributed to the integration of stablecoins by major payment providers such as Stripe and PayPal, according to Marc Boiron, CEO of Polygon Labs.

In an interview with Cointelegraph, Boiron highlighted the role of these payment giants in driving stablecoin adoption. "Companies like Stripe and PayPal integrating stablecoins is likely the primary catalyst for their growth," he said. PayPal's entry into the digital asset space began in 2022, allowing users to transfer and receive cryptocurrencies like Bitcoin and Ether. A year later, PayPal launched its own US dollar-pegged stablecoin, PayPal USD (PYUSD), which quickly reached a market capitalization of over $1 billion.

Stripe, another prominent player, has also embraced stablecoins through its "Pay with Crypto" feature, enabling businesses to accept USD Coin (USDC) payments on various blockchains. Additionally, Stripe partnered with global payroll provider Remote to facilitate USDC payments for international contractors. In October 2023, Stripe announced the acquisition of stablecoin startup Bridge Network for $1.1 billion, further solidifying its commitment to the stablecoin ecosystem.

The integration of stablecoins by these payment providers has not only expanded their use cases but also attracted traditional businesses and institutions. Boiron noted that new regulatory frameworks in Europe and policy shifts in the US have opened doors for these entities to adopt stablecoins. The common denominator among these adopters is the recognition of the proven profitability demonstrated by established stablecoin players and the opportunity to provide better payment rails, especially for remittances, while avoiding traditional fee structures.

Stablecoins have grown into a $230-billion industry, supporting various use cases across developed and emerging economies. Tether's USDt (USDT) remains the largest stablecoin, accounting for over 61% of the overall market. Tether's profitability is evident, with the company generating $13 billion in net earnings in 2024, primarily due to its massive US Treasury holdings.

Polygon's proof-of-stake chain has seen a significant increase in stablecoin supplies, with a 14% jump in the fourth