PayPal Ventures Invests in Stable, Brings PYUSD to New Blockchain for Payments

PayPal Ventures has invested in Stable, a new layer-1 blockchain network built for stablecoin payments. As part of the deal, PayPal’s own stablecoin, PayPal USD ($PYUSD), will now be available on the Stable network. The goal is to make digital dollar payments easier, faster, and more accessible across borders.

This partnership is part of PayPal’s larger plan to expand PYUSD into multiple blockchain ecosystems. Issued by Paxos Trust Company and backed 1:1 by the U.S. dollar, PYUSD can now be used for peer-to-peer payments, remittances, and commerce directly on the Stable blockchain, also known as Stablechain.

Stable says the integration will use LayerZero technology to allow PYUSD to work across different blockchains. The company also plans to launch onramps and off-ramps for the stablecoin in countries where demand for dollar-backed digital assets is growing.

PayPal Ventures Joins the Stable Network

PayPal Ventures’ decision to back Stable reflects its focus on building real-world use cases for digital currencies. David Weber, head of the PYUSD ecosystem at PayPal, said the goal is to make the stablecoin more practical and useful. “This work with Stable reflects our commitment to expanding PYUSD’s utility across multiple blockchain ecosystems and driving adoption,” Weber said.

PYUSD was launched in August 2023 in partnership with Paxos. Since then, PayPal has worked to integrate it into different financial products and platforms. The company says adding PYUSD to Stablechain is another step toward building a global payments network based on stablecoins.

Stable, which came out of stealth in July 2024, raised $28 million in a seed funding round led by cryptocurrency exchange Bitfinex and venture capital firm Hack VC. PayPal Ventures joined the round as part of its investment in the blockchain project.

Sam Kazemian, the newly appointed Chief Technology Officer of Stable, called the partnership a major step forward. “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,” Kazemian said.

PayPal Ventures partner Amman Bhasin said the investment reflects the company’s focus on emerging markets, where stablecoins can provide access to dollar-based payments in places with limited banking infrastructure. “We’re excited to invest in Stable because they’re tackling the real frontier for stablecoins, the emerging markets where reliable, dollar-based payments can have the greatest impact,” Bhasin said.

At the time of writing, PYUSD ranked as the 11th largest stablecoin by market capitalization, with about $1.4 billion in circulation, according to CoinGecko data. Tether’s USDT remains the largest stablecoin by a wide margin, with a market cap above $172 billion.

Despite its smaller size, PayPal believes PYUSD can reach more users through partnerships like this one. The company says Stable’s low fees and fast settlement times make it well-suited for real-world payments.

Stable’s Technology and Cross-Chain Features

Stable describes itself as an institutional-grade blockchain designed for stablecoin transactions. It focuses on speed, low fees, and ease of use. The network was built to make sending and receiving digital dollars as simple as possible.

On its website, Stable says the blockchain offers “real-dollar settlement with sub-second finality” and supports “gas-free peer transfers.” That means users can transfer money without paying high fees or waiting long for confirmation.

Stable also integrates with LayerZero, a cross-chain technology that allows digital assets like PYUSD to work across different blockchains. This feature could help expand PYUSD’s use in decentralized finance (DeFi) applications, payments, and remittances.

Stable’s network is closely tied to Tether, the issuer of USDT, the world’s largest stablecoin. The platform says it was “designed for USDT” and uses a stablecoin as its native gas token. “Using USDT as the native gas token eliminates the complexity of managing volatile tokens just to move digital dollars,” Stable’s FAQ says.

However, it is not clear whether the network uses USDT or USDT0, a cross-chain liquidity stablecoin created by Everdawn Labs. Stable did not respond to requests for clarification before publication.

For PayPal, the technology behind Stable is key to making PYUSD more useful. The company says faster settlement times and cross-chain interoperability will help digital dollars work more like traditional money, without the inefficiencies of existing financial systems.

Weber, the PYUSD ecosystem head at PayPal, said the partnership with Stable will unlock “new commerce-related use cases” for the stablecoin, especially in payments and remittances.

Expanding Stablecoin Payments in Emerging Markets

One of the main goals of the partnership is to bring digital dollar payments to regions where banking infrastructure is weak or unreliable. Stable says it plans to build onramps and offramps to make it easy for people to convert local currency to PYUSD and back again.

In countries with high demand for dollar-backed assets, stablecoins can provide a way to store value in a more stable currency. They can also make cross-border payments faster and cheaper compared to traditional methods.

Market reaction to the partnership has been mostly positive. Developers on Twitter and Discord said they see potential for new DeFi applications and remittance tools. Some said they expect faster and cheaper payments to encourage more businesses to adopt stablecoins for international transactions.

The use of LayerZero technology also opens the door to DeFi protocols that can run across multiple blockchains. That could help developers build services like lending, borrowing, and cross-border payments without being limited to one ecosystem.

PayPal has been gradually expanding its role in digital finance over the past few years. The company already allows users to buy, hold, and sell cryptocurrencies on its platform. Adding PYUSD to multiple blockchains represents another step in its push to make digital assets part of everyday financial life.

Bhasin from PayPal Ventures said the partnership with Stable is part of a long-term plan to bring stablecoins into mainstream finance. He emphasized the importance of building real-world applications, especially in underserved regions.

Coincu Research, a blockchain analysis group, said the partnership could lead to new financial solutions for people in countries with limited access to banks. By combining PayPal’s reach with Stable’s technology, the two companies may help bring digital payments to more users around the world.

Kazemian, Stable’s CTO, summed up the company’s goal: “Our vision is to reduce friction in payments globally and give people better access to financial tools.” He added that this partnership is a major step in that direction.