cointelegraph.com
Stable, an institutional-grade stablecoin blockchain backed by cryptocurrency exchange Bitfinex, is integrating a stablecoin built by major online payment platform PayPal.
PayPal Ventures has made a strategic investment in Stable to bring PayPal USD ($PYUSD) stablecoin onto the Stablechain, according to an announcement by Stable on Monday.
“This work with Stable reflects our commitment to expanding $PYUSD’s utility across multiple blockchain ecosystems and driving adoption,” $PYUSD ecosystem head David Weber said, highlighting Stable’s focus on fast and seamless financial transactions.
The news came about two months after Stable emerged from stealth in late July, announcing a $28 million seed funding round co-led by Bitfinex and Hack VC.
Stable is “designed for $USDT”
Stable is a layer-1 blockchain designed for seamless financial transactions, targeting peer-to-peer payments, remittances and cross-border transactions.
The project is closely connected to Tether USDt ($USDT), the world’s largest stablecoin by market capitalization.
On its website, Stable describes its blockchain as being “designed for $USDT,” delivering real-dollar settlement with “sub-second finality, gas-free peer transfers, and $USDT as native gas.”
“Using $USDT as the native gas token eliminates the complexity of managing volatile tokens just to move digital dollars,” Stable’s FAQ says.
In addition to $USDT, Stable is also linked to USDT0 (USDT0), a cross-chain liquidity stablecoin introduced by Everdawn Labs, according to its X account bio and info on its website.
It’s unclear whether Stable uses $USDT or USDT0 as the native gas token. Cointelegraph contacted Stable but did not receive a response by publication.
New commerce-related use cases for $PYUSD
According to PayPal’s Weber, the partnership with Stable aims to unlock “new commerce-related use cases” for $PYUSD.
Launched in collaboration with Paxos in August 2023, $PYUSD has grown to become a notable player in the stablecoin stablecoin market, though it still trails far behind Tether’s $USDT, with its $172 billion market cap.
Related: Changpeng Zhao’s YZi Labs deepens stake in stablecoin issuer Ethena
At the time of writing, $PYUSD ranked as the 11th largest stablecoin by market cap, valued at around $1.4 billion, according to data from CoinGecko.
“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,” PayPal Ventures partner Amman Bhasin said.
PayPal did not immediately respond to Cointelegraph’s press inquiry about its collaboration with Stable.
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