The stablecoin wars just got more interesting. Stable, the layer 1 blockchain network already powered by USDT, announced today that it will integrate PayPal USD (PYUSD)—PayPal’s regulated, dollar-backed stablecoin—into its network. The move brings PayPal’s digital dollar into a blockchain built specifically for stablecoin-powered payments, while PayPal Ventures is putting skin in the game with an investment in Stable’s $28 million seed round.

Stablecoins Meet Payments Giant

PayPal launched PYUSD in 2023 as a Paxos-issued, NYDFS-regulated stablecoin pegged 1:1 to the US dollar. Adoption has been steady but far from dominant compared to Tether (USDT) and Circle’s USDC. By teaming with Stable, PayPal is attempting to expand PYUSD’s real-world commerce use cases beyond its own platform.

Stable, for its part, is pitching itself as a fast, low-fee, settlement-first chain designed for dollar-backed digital money. Its integration with LayerZero means PYUSD on Stablechain can be bridged across different blockchain ecosystems, enabling cross-chain payments and future interoperability.

“PayPal has decades of experience in global payments, and their expertise in fiat rails is a perfect complement to our stablecoin-first architecture,” said Sam Kazemian, CTO of Stable. “Together we want to unlock the next era of cross-border transactions.”

Why PayPal Cares About This

PayPal has been pushing to expand PYUSD’s reach, striking integrations with Coinbase, Crypto.com, and Venmo. Still, volume lags far behind USDT and USDC, which dominate crypto trading pairs. Stable offers something different: not just another blockchain, but one purpose-built for stablecoins in everyday commerce—where finality, low fees, and reliability matter more than yield farming.

“This work with Stable reflects our commitment to expanding PYUSD’s utility across multiple blockchain ecosystems and driving adoption,” said David Weber, Head of PYUSD Ecosystem at PayPal.

Venture Capital and Emerging Markets

Backing Stable isn’t just about technology; it’s about geography. PayPal Ventures partner Amman Bhasin made clear that Stable’s focus on emerging markets—where reliable dollar-based payments are often more valuable than speculative DeFi yields—was a deciding factor. That’s also where stablecoins are gaining traction as a hedge against volatile local currencies.

Stable plans to lean into that strategy with distribution partnerships aimed at scaling adoption where access to USD is limited. Think Africa, Latin America, and Southeast Asia—regions where mobile payments leapfrogged banks, and now stablecoins could leapfrog traditional remittances.

What Stable Brings to the Table

• Speed and Cost: Near-instant settlement and low fees aimed at merchant transactions.
• Cross-Chain Support: LayerZero integration to bridge PYUSD and other stablecoins across ecosystems.
• On/Off Ramps: Plans to expand fiat gateways for global users.
• Stablecoin Focus: Unlike Ethereum or Solana, Stable’s entire design centers on stablecoins as the default transaction medium.

The company also highlighted its Agent marketplace and hinted at upcoming payment-focused products in its 2025 roadmap. That, paired with four new executive hires—including Co-CEO Brian Mehler and CTO Kazemian—suggests Stable is positioning itself not as another DeFi playground but as a payments-grade blockchain with institutional credibility.

The Bigger Picture

Stable’s integration of PYUSD is more than a partnership announcement; it’s part of a broader arms race for stablecoin dominance. With USDT entrenched in crypto trading, USDC pushing into regulated finance, and PYUSD backed by a fintech heavyweight, the battleground is now shifting toward commerce adoption and real-world utility.

If Stable delivers on its vision of frictionless, dollar-backed transactions across borders, it could give PYUSD the kind of circulation PayPal needs to make its stablecoin more than just another ticker symbol.

But as with all things crypto, the regulatory wildcard looms. The NYDFS still holds the keys to any materially new PYUSD product or service, and compliance hurdles could slow down execution. For now, though, both PayPal and Stable are betting that the next billion stablecoin transactions will look more like payments than speculation.