PayPal Invests in Stable Layer 1 to Expand PYUSD Utility Across Blockchains

PayPal is deepening its stablecoin push with a strategic investment in Stable, a layer 1 blockchain built for stablecoin-based payments. The move, announced on 22 September 2055, will bring PayPal USD (PYUSD) onto the Stablechain, enabling faster, lower-cost commerce transactions and expanding the token’s liquidity across ecosystems.

The investment was made through PayPal Ventures, the company’s venture capital arm, as part of Stable’s recent $28 million seed round that also included backing from Bitfinex and Hack VC. With this partnership, PayPal aims to boost PYUSD’s adoption by embedding it into a blockchain infrastructure specifically designed for stablecoin transactions.

Stable CTO Sam Kazemian, who joined the company earlier this year, said the collaboration reflects a shared vision for simplifying global digital payments.

“Our teams are aligned on the clear benefits that digital asset implementation can bring for consumers,” Kazemian noted. “This is the next true advancement in cross-border transactions.”

Stablechain to Support PYUSD

PYUSD, issued by Paxos Trust Company and pegged 1:1 to the U.S. dollar, will now be natively supported on the Stablechain. The integration will leverage LayerZero’s interoperability framework, enabling programmatic cross-chain transfers. Stable says its network provides near-instant finality and reduced fees, making it suitable for retail payments, remittances, and other commerce-focused use cases.

Stable will also explore cross-chain compatibility and on/off-ramp features for PYUSD, which could allow the stablecoin to circulate more fluidly across multiple blockchain environments. Additionally, PayPal and Stable signaled interest in developing future products tied to stablecoin utility.

“This work with Stable reflects our commitment to expanding PYUSD’s utility across ecosystems,” said David Weber, Head of PYUSD Ecosystem at PayPal. “Together, we will unlock new commerce-related use cases for stablecoins within the greater financial system.”

Targeting Emerging Markets

For PayPal Ventures, the investment aligns with a broader strategy to make PYUSD relevant in markets where reliable, dollar-based payments are most needed.

“Stable is tackling the real frontier for stablecoins—the emerging markets where they can have the greatest impact,” said Amman Bhasin, Partner at PayPal Ventures. “Working with trusted distribution partners gives them a unique edge to scale quickly and grow real-world adoption.”

Stable has been positioning itself as a payments-first blockchain since emerging from stealth. Its design prioritizes usability by using USDT as the gas token, reducing reliance on volatile assets for transaction fees. The company also unveiled a 2025 roadmap focused on rolling out developer tools, new cross-border payment features, and deeper integrations with partners.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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