PayPal ramps up stablecoin push with investment in L1 Stable

PayPal has invested in Stable, a layer-1 stablecoin platform, to advance the adoption of its U.S. dollar-pegged stablecoin, PayPal USD.

Stable will help accelerate the global adoption of PayPal USD via its layer 1 blockchain platform, the firm said in an announcement.

This follows a partnership between the crypto platform and PayPal, the financial technology giant that has made significant strides in its crypto foray over the past year.

Stable, which has received a backing from PayPal Ventures, the venture arm of the U.S.-based company. Following this strategic investment, Stable will tap into its stablecoin-focused infrastructure to bring PayPal USD (PYUSD) to more users.

With the integration, users will be able to use PYUSD for commerce and financial transactions via the L1 network, Stablechain. Stable will look to leverage PayPal’s experience and expertise in the digital-assets space to boost both stablecoin use and the network’s growth.

Sam Kazemian, the chief technology officer of Stable, said:

“Our teams are aligned on the clear benefits that digital asset implementation can bring for consumers, making them a perfect fit to help us bring about the next true advancement in cross-border transactions.”

Onramp/offramp solutions

Stable and PayPal are adding PYUSD integration on Stablechain via the interoperability protocol LayerZero, whose solution will help bring reduced fees and near-instant finality to PYUSD users. The integration is also aimed at tapping into cross-chain compatibility as well as on-ramp/off-ramp capabilities, an integration that Stable says unlocks new use cases for PayPal USD. Meanwhile, future deals include collaboration across payments and stablecoin utility.

PayPal Ventures’ investment, part of Stable’s latest funding round, reflects a commitment to making this a reality, said David Weber, head of the PYUSD ecosystem.

“Together, we will unlock new commerce-related use cases for PYUSD, furthering adoption of stablecoins within the greater financial ecosystem,” Weber added.

Stable raised $28 million in its seed funding round, which also attracted backing from notable ecosystem players. Among them are crypto exchange Bitfinex and venture firm Hack VC.