Stablecoins are drawing increased attention in the financial industry due to their simplicity and efficiency. One major entity seriously engaging with this technology is PayPal with its PYUSD stablecoin.
PayPal Pushes for PYUSD Adoption
According to a Bloomberg report dated February 26, 2025, PayPal is expanding its stablecoin PYUSD's adoption with plans to integrate it into various services by the end of 2025. This initiative aims to facilitate transactions for over 20 million small and medium-sized enterprises. Michelle Gill, PayPal's General Manager for Financial Services, states that PYUSD will become a payment option for upcoming bill payment products. Additionally, merchants can utilize PayPal's blockchain technology for international transactions. 'Many payments we expect to be cross-border due to merchants in the US wanting to pay suppliers overseas,' Gill noted in an interview with Bloomberg. PYUSD promises to simplify international payments by removing the need for currency conversion, thanks to its value stability against the US dollar.
Hyperwallet and PYUSD Integration
Additionally, PayPal plans to offer PYUSD as a global payment option through Hyperwallet, a company enabling mass payments to freelancers and sellers worldwide. PayPal acquired Hyperwallet in 2018 for over $400 million. Stablecoin payments are planned to launch in Q1 2025. Also, PayPal is set to enable merchants to complete PayPal Checkout transactions using cryptocurrencies, including PYUSD, by the end of 2025. These moves reinforce PayPal's stature as a pioneering force in blockchain-based digital payment innovations. 'We've talked about blockchain for a decade, but this concept becomes real when you can start spending it,' said PayPal CEO, Alex Chriss.
Mass Stablecoin Adoption in Banking
Not only PayPal, but traditional financial institutions are also turning to stablecoin technology. Bank of America (BofA), the second-largest bank in the US, reportedly plans to release its dollar-pegged stablecoin. This move could give it an edge over stablecoins like USDT or USDC due to strict regulations and backing by customer deposit balances. However, this initiative faces regulatory challenges as Fed Chairman Jerome Powell emphasized that widely used cryptocurrencies must adhere to strict banking regulations. Observing this trend, Matt Hougan, CIO of Bitwise, predicts that stablecoins like PYUSD will dominate the international transaction market. 'Stablecoins will dominate the cross-border B2B retail transaction market worth $44 trillion in the next five years,' he stated on X.
With an increasing number of major companies like PayPal and Bank of America adopting stablecoins, blockchain technology continues to gain popularity and promises a new future in digital payments.
