PayPal Connects PYUSD to International Markets Through a Strong Collaboration

PayPal Holdings Inc. (NASDAQ: PYPL) has revealed a strategic partnership with Stable, a Layer 1 blockchain initiative created by

, to boost the accessibility, use cases, and liquidity of its U.S. dollar-pegged stablecoin, USD (PYUSD). This announcement signals PayPal’s ongoing push to embed stablecoins into its digital payments platform while widening the presence of PYUSD across diverse blockchain ecosystems. Spearheaded by PayPal Ventures, the company’s investment arm, this funding comes after Stable’s recent $28 million seed round, which saw backing from Bitfinex and Hack VC.

The Stable network, designed for efficient and frictionless financial exchanges, employs Tether’s

as its primary token, enabling fast transactions at a low cost. Through this collaboration, PYUSD will be brought onto the Stablechain, letting users utilize the stablecoin for both commercial activities and international money transfers. Integration will harness LayerZero’s cross-chain protocol to allow seamless movement of PYUSD between various blockchains, supporting rapid settlement and efficiency. This partnership fits within PayPal’s broader objective of making PYUSD a foundational element of the crypto economy, with future plans to expand interoperability and entry/exit points for the token.

This investment highlights PayPal’s resolve to expand PYUSD’s functions beyond its original blockchains (Ethereum,

, , and Stellar). By connecting PYUSD to Stable’s platform, PayPal seeks to access a blockchain ecosystem that is focused on stablecoin-centric transactions, especially in regions where dollar-backed assets are vital for money transfers, online shopping, and peer financial exchanges. Sam Kazemian, who recently took on the role of Chief Technology Officer at Stable, pointed out the complementary nature of PayPal’s payment services and Stable’s aim for “real-world stablecoin adoption,” suggesting the partnership could fuel “the next significant leap in global payments.”

Issued by Paxos Trust Company and backed by U.S. dollar reserves and government securities, PayPal’s PYUSD reached a $1.3 billion market cap by September 2025. Its integration into Stable’s network follows recent support for nine new blockchains, such as

, , and , made possible by LayerZero’s Stargate Hydra technology. This development strengthens PYUSD’s ability to rival major stablecoins like Tether’s USDT (with a $171 billion market cap) and Circle’s ($74 billion), both of which lead the $239 billion stablecoin sector.

This collaboration additionally showcases PayPal’s strategic relationship with Tether, USDT’s issuer. While Tether has encountered regulatory challenges in the United States, its stronghold in the global stablecoin market—representing 18% of BRICS-related trade—establishes it as a pivotal figure in digital assets. By embedding PYUSD within Tether’s network, PayPal stands to benefit from broader liquidity and transactional infrastructure, especially in developing markets where stablecoins are used to counteract inflation and currency instability.

PayPal’s stake in Stable is part of a larger trend where traditional financial players are using blockchain interoperability to broaden their digital finance offerings. With stablecoins now exceeding $210 billion in market value—surpassing PayPal itself—the regulatory environment is shifting to address concerns like redemption policies and transparency in reserves. The partnership between PayPal,

and Tether is designed to tackle these issues by focusing on compliance and scalability, while the emphasis on multi-chain operability reflects increasing demand for smooth, international payments.