Venmo and PayPal have introduced a new feature that lets users transfer cryptocurrency using Ethereum Name Service (ENS) names. This update is expected to reach over 270 million users across the United States.
ENS Labs, the company behind this technology, made the announcement on 10 September. The goal is to make sending and receiving crypto more straightforward, even for people who are not familiar with blockchain.
ENS, which was founded in 2017 with support from the Ethereum Foundation, has grown steadily, with over two million names registered on the blockchain and another four million off-chain.
In response to the latest integration with PayPal and Venmo, the ENS token saw a 7.5% increase, rising to $17.8.
Currently, the token is trading at $17, marking a 3% rise in the last seven days, according to CoinGecko.
Simplifying crypto transfers
The use of ENS names makes cryptocurrency transfers much easier. Traditionally, transferring crypto requires users to input lengthy addresses made up of random letters and numbers.
ENS names allow users to register simple names, such as “yourname.eth”. This means users won’t have to worry about making mistakes when transferring crypto.
This feature is designed to help both new and experienced users avoid errors when sending crypto. According to ENS Labs, it also reduces the risk of losing funds by sending them to the wrong address.
The Executive Director of ENS Labs, Khori Whittaker, said that this integration will “bring ENS naming capabilities to millions of users through Venmo, PayPal Mobile, and PayPal Web”.
ENS names are also saved in users’ address books for quicker and easier future transfers. The Director of Business Development at ENS Labs, Marta Cura, noted,
“Working with PayPal and Venmo allows us to reach those who are new to the crypto space and those who prefer the familiarity of Web2 payment platforms.”
ENS’s role in blockchain and PayPal’s expansion
ENS is a blockchain-based technology that aims to make using cryptocurrencies simpler. It works in a similar way to how the Internet’s Domain Name Service (DNS) turns complicated web addresses into easy names.
However, ENS uses the Ethereum blockchain for added security and transparency.
This is not the first time PayPal has been involved in the crypto world. PayPal has been expanding its role in the blockchain industry since 2021.
According to CoinMarketCap, PayPal’s own stablecoin, PayPal USD ($PYUSD), has recently passed $1 billion in market value.
In May, PayPal launched PYUSD on the Solana network and partnered with companies like Crypto.com and Paxos to increase the adoption of cryptocurrencies.
By integrating ENS names into PayPal and Venmo, both platforms are making it easier for users to send and receive crypto.
In addition to this, PayPal’s Venmo platform has recently added support for MoonPay, allowing users to purchase crypto directly through the platform.
The company also made its $PYUSD stablecoin available for use on Venmo, further strengthening its role in the growing world of cryptocurrency.
Challenges and growth for ENS Labs
While ENS Labs is experiencing growth through partnerships and integrations, it is also dealing with a legal challenge.
In May 2024, ENS Labs filed a petition with the US Patent and Trademark Office against Unstoppable Domains, another company that provides blockchain-based domain names.
ENS Labs argues that the patent awarded to Unstoppable Domains lacks any original contributions and infringes on ENS’s open-source technology.
Despite this legal issue, ENS Labs continues to move forward. The company recently announced its move to a layer-2 network, which will help reduce the gas fees that users have to pay and improve transaction speeds. This change is expected to make ENS more efficient and accessible to everyday users.
ENS is also working on other partnerships to expand its reach. Earlier this year, it teamed up with domain name registrar GoDaddy, allowing users to link their traditional “.com” domains with their ENS names.
This further simplifies how users interact with crypto addresses by tying them to names they already know.
