PayPal Invests in Stable Layer 1: Boosting PYUSD Utility with USDT Integration

On September 22, 2025, PayPal announced an investment in Stable, a Layer 1 blockchain optimized for USDT, through its venture arm PayPal Ventures. This partnership enables PayPal USD (PYUSD) integration for commercial and financial transactions on Stable Chain, enhancing PYUSD's distribution, utility, and liquidity. Stable maintains strategic ties with Tether but operates independently. In a $3.5 trillion cryptocurrency market, this PayPal Stable investment signals deeper TradFi-crypto fusion, potentially intensifying stablecoin competition. This article covers the PayPal Stable investment details, PYUSD features, Stable's role, market implications, and outlook.

PayPal Stable Investment Breakdown

The PayPal Stable investment involves PayPal Ventures participating in Stable's latest funding round, focusing on a Layer 1 designed for efficient USDT operations. This collaboration allows PYUSD holders to conduct seamless transactions on Stable Chain, bridging PayPal's stablecoin with Tether's ecosystem. The PayPal Stable investment aims to optimize cross-border payments and DeFi liquidity, leveraging Stable's infrastructure for faster settlements.

  • Funding: PayPal Ventures in latest round.
  • Focus: USDT-optimized Layer 1.
  • Goal: Enhance PYUSD on Stable Chain.

PYUSD Integration and Features

PYUSD, PayPal's 1:1 USD-pegged stablecoin, gains expanded utility through the PayPal Stable investment, supporting commercial and financial activities on Stable Chain. Features include real-time settlements and multi-chain compatibility, reducing friction in global transactions. This PayPal Stable investment positions PYUSD for broader adoption, competing with USDT's dominance in remittances and DeFi.

  • Peg: 1:1 to USD.
  • Utility: Payments and DeFi on Stable.
  • Competition: Vs. USDT's market lead.

Stable's Role and Tether Ties

Stable functions as a Layer 1 for USDT efficiency, with strategic and technical links to Tether but no subsidiary status. The PayPal Stable investment strengthens its ecosystem, enabling PYUSD interoperability. Stable's focus on scalability supports high-volume use cases, fostering innovation in stablecoin infrastructure.

  • Ties: Strategic with Tether.
  • Independence: Not a subsidiary.
  • Scalability: For high-volume transactions.

Market Implications

The PayPal Stable investment could reshape the $279.8 billion stablecoin market, where USDT holds $172.3 billion dominance. By integrating PYUSD, it boosts liquidity and adoption in payments, amid regulatory scrutiny like the GENIUS Act. In a $3.5 trillion cryptocurrency market, this PayPal Stable investment accelerates TradFi-crypto convergence, potentially drawing more institutional flows.

  • Stablecoin market: $279.8 billion.
  • USDT share: $172.3 billion.
  • Convergence: TradFi into crypto.

Final Insights

PayPal's investment in Stable on September 22, 2025, integrates PYUSD for enhanced utility on a USDT-focused Layer 1. In a $3.5 trillion market, this drives stablecoin innovation. Monitor GENIUS Act developments for regulatory impacts.

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