Bitfinex-backed Stable integrates PayPal’s PYUSD stablecoin
News Summary
Stable, an institutional-grade stablecoin blockchain backed by cryptocurrency exchange Bitfinex, has announced the integration of PayPal’s PYUSD stablecoin. PayPal Ventures made a strategic investment in Stable to bring PYUSD onto the Stablechain, aiming to expand PYUSD’s utility across multiple blockchain ecosystems and drive adoption. Stable emerged from stealth in late July this year, having secured a $28 million seed funding round co-led by Bitfinex and Hack VC. Stable is a Layer-1 blockchain designed for seamless financial transactions, specifically targeting peer-to-peer payments, remittances, and cross-border transactions. It is closely connected to Tether (USDT), the world’s largest stablecoin, with its blockchain described as “designed for USDT” and using USDT as the native gas token. Through this partnership, PayPal aims to unlock “new commerce-related use cases” for PYUSD. While PYUSD, launched in August 2023, has become a notable player, its market capitalization of approximately $1.4 billion remains significantly smaller than Tether’s USDT, which stands around $172 billion. PayPal Ventures partner Amman Bhasin stated that the investment in Stable is driven by its focus on the real frontier for stablecoins in emerging markets, where reliable, dollar-based payments can have the greatest impact.
Background
Stable is a Layer-1 blockchain project designed to facilitate fast, seamless financial transactions, particularly in areas like peer-to-peer payments, remittances, and cross-border transactions. The project is closely linked to Tether (USDT), the world's largest stablecoin by market capitalization, with its blockchain supporting USDT as the native gas token to simplify digital dollar transfers. PayPal launched its USD-pegged stablecoin, PYUSD, in August 2023 in collaboration with Paxos, aiming to enter the cryptocurrency market and offer new solutions for digital payments. Despite its rapid growth since launch, PYUSD's market share remains significantly smaller compared to Tether's USDT. Bitfinex is a prominent cryptocurrency exchange and an affiliate of Tether Limited, playing a crucial role in the stablecoin ecosystem.
In-Depth AI Insights
What is the true strategic intent behind PayPal's investment in Stable and PYUSD integration? - Beyond simply expanding PYUSD's