PayPal strategically invests in Stable Chain, the integration of PYUSD stablecoin will disrupt the cross-border payment market.

PayPal Ventures announced a strategic investment in the institutional-grade stablecoin blockchain Stable supported by Bitfinex, with both parties integrating PayPal's PYUSD stablecoin into the Stablechain platform. This collaboration marks an important integration of traditional payment giants with the encryption field, expected to open up new business application scenarios for PYUSD while accelerating the adoption of stablecoins in the cross-border payment and remittance market.

The Stable mainnet is expected to launch in the fourth quarter of 2025, providing users with sub-second transaction confirmation and a zero Gas fee peer-to-peer transfer experience.

PayPal and Stable's Strategic Partnership: A Major Breakthrough in the Stablecoin Ecosystem

According to the announcement released by Stable this week, PayPal Ventures has made a strategic investment in the institutional-grade stablecoin blockchain Stable supported by Bitfinex, aiming to integrate PayPal's PYUSD stablecoin into the Stablechain platform. This collaboration not only marks a deep integration of traditional finance with the encryption field but also brings significant expansion to the application scenarios of PYUSD.

David Weber, the head of the PYUSD ecosystem, stated regarding this collaboration: "Our partnership with Stable reflects our commitment to expanding the utility of PYUSD across multiple Blockchain ecosystems and driving its adoption." Weber particularly emphasized Stable's focus on fast and seamless financial transactions, which aligns closely with PayPal's payment vision.

This collaboration occurred shortly after Stable completed significant financing. About two months ago, Stable announced at the end of July the completion of a $28 million seed round financing led jointly by Bitfinex and Hack VC, demonstrating strong market confidence in this innovative stablecoin infrastructure.

Stable: A dedicated high-efficiency blockchain for stablecoins

Stable is a Layer-1 Blockchain designed specifically for seamless financial transactions, optimized for peer-to-peer payments, remittances, and cross-border transactions. Unlike traditional blockchains, Stable's design philosophy has focused on the efficient circulation of stablecoins from the very beginning.

Stable co-CEO Brian Mehler revealed in an interview with Cointelegraph that since its launch in July, Stable is currently in a private testnet phase, limited to invited partners. "This stage allows for rigorous testing and optimization before a wider release," Mehler explained, "As we launch the mainnet in the fourth quarter of this year, transaction volumes and other detailed metrics of stablecoins will become clearer."

Although Stable's mainnet is expected to go live in the fourth quarter of 2025, Mehler confirmed that PayPal and PYUSD will be the launch partners for Stable. "Complete details regarding integration and usage will be announced before the mainnet goes live," he added.

Technological Innovation: "Blockchain Designed Specifically for USDT"

Stable describes its blockchain on its official website as "designed specifically for USDT," providing a real dollar settlement experience through three major technological innovations:

Sub-second transaction finality: far faster than the confirmation times of traditional Blockchain.

Gas-free peer-to-peer transfers: eliminates the burden of users paying network fees.

USDT as Native Gas: Using the stablecoin itself as transaction fees simplifies the user experience.

The FAQ for Stable explains: "Using USDT as the native Gas token can eliminate the complexity of managing volatile tokens solely for transferring digital dollars." This design concept directly addresses the pain point of users needing to hold volatile tokens (such as ETH) to pay Gas fees in traditional blockchains.

USDT0 and gasUSDT: Dual-layer Token Design of Stable

In addition to its close collaboration with Tether's USDT, Stable has also deeply integrated with the cross-chain liquidity stablecoin USDT0 launched by Everdawn Labs. This dual-layer token design provides Stable with unique technical advantages.

Mehler provided a detailed explanation of this design: "The native Gas token of Stable is the unwrapped version of USDT0, called gasUSDT, while USDT0 is the version that most users will see and use for sending, receiving, and cross-chain activities. In reality, people interact with USDT0, while the Gas functionality operates silently in the background."

This innovative double-layer design enables Stable to achieve both a user-friendly trading experience and efficient blockchain operations, providing an unprecedented smooth experience for stablecoin transactions.

PYUSD: PayPal's stablecoin ambition

PayPal's PYUSD was launched in August 2023 in collaboration with Paxos and has quickly become an important player in the stablecoin market within just over a year. According to CoinGecko data, PYUSD currently ranks as the 11th largest stablecoin by market capitalization, with a market cap of approximately 1.4 billion USD.

Although this figure still has a significant gap compared to the market value of 172 billion USD for USDT, PYUSD demonstrates enormous growth potential thanks to PayPal's strong user base and payment network.

· Explore "new business-related use cases"

PayPal's Weber stated that the collaboration with Stable aims to unlock "new business-related use cases" for PYUSD. This statement suggests that PayPal's long-term strategic planning for PYUSD is not limited to cryptocurrency transactions, but rather hopes to develop it into a bridge connecting traditional business with the digital economy.

Amman Bhasin, partner at PayPal Ventures, expressed strong confidence in this collaboration: "We are excited to invest in Stable because they are tackling the true frontier of stablecoins, which is the emerging markets where reliable USD payments can have the greatest impact."

This statement reveals PayPal's global strategic vision - to use stablecoins as a key tool to address payment issues in emerging markets, particularly in the areas of cross-border payments and remittances.

Market Impact: Reconstruction of the stablecoin ecosystem

The collaboration between PayPal and Stable could have a profound impact on the entire stablecoin ecosystem. This partnership not only provides new application scenarios and circulation channels for PYUSD, but also offers a successful example for other stablecoin issuers to collaborate with traditional financial institutions.

· Impact on the stablecoin market

Accelerating Market Consolidation: With the entry of traditional financial giants like PayPal, the stablecoin market may accelerate consolidation, forming several dominant stablecoin ecosystems.

Increase user adoption: PayPal's massive user base could bring a new wave of adoption for stablecoins.

Promoting Regulatory Clarity: The participation of traditional financial institutions may encourage regulators to accelerate the development of a clear stablecoin regulatory framework.

Expand business application scenarios: Stablecoins may evolve from pure cryptocurrency trading tools to a wide range of commercial payment solutions.

· Pressure on Competitors

The collaboration between PayPal and Stable will also put pressure on competitors like Circle's USDC. USDC has always relied on its compliance and close ties with traditional finance as a competitive advantage, but PYUSD, with PayPal's brand influence and user base, may challenge USDC's position in this area.

Future Outlook: The Commercialization Process of Stablecoins

With the Stable mainnet expected to launch in the fourth quarter of 2025, the integration of PYUSD and Stable will open up new possibilities for the commercialization of stablecoins. This collaboration may lead to several key developments:

Retail Payment Integration: PYUSD may be integrated into more retail payment scenarios, providing consumers and merchants with low-cost, high-efficiency payment options.

Cross-border payment innovation: Combining PayPal's global network and Stable's efficient Blockchain, PYUSD may become the ideal solution for cross-border payments.

Enhancing financial inclusion: In areas with inadequate banking services, PYUSD may become an important financial tool to help more people access basic financial services.

Enterprise financial applications: Companies may begin using PYUSD for international settlements, supply chain financing, and other financial activities.

Conclusion: A New Chapter in the Stablecoin Ecosystem

PayPal's strategic investment in Stable and the integration of PYUSD with Stablechain marks an important milestone in the development of the stablecoin ecosystem. This collaboration not only demonstrates the recognition of traditional financial giants towards Blockchain technology but also indicates that stablecoins may play an increasingly important role in global payment systems.

With the launch of the Stable mainnet and the further development of PYUSD, we may be about to witness a critical turning point for stablecoins, transitioning from purely crypto assets to mainstream financial instruments. This is undoubtedly a positive signal for the entire cryptocurrency industry, indicating that blockchain technology is gradually fulfilling its promise to transform the global financial system.