Stable, a blockchain for institutional-grade stablecoins backed by the cryptocurrency exchange Bitfinex, is set to integrate a stablecoin developed by the prominent online payment platform PayPal.
PayPal Ventures has strategically invested in Stable to incorporate the PayPal USD (PYUSD) stablecoin onto the Stablechain, as announced by Stable on Monday.
“Collaborating with Stable underscores our dedication to enhancing PYUSD’s functionality across diverse blockchain ecosystems and promoting its adoption,” stated David Weber, head of the PYUSD ecosystem, emphasizing Stable’s mission for swift and seamless financial transactions.
This announcement follows Stable’s reveal from stealth in late July, when it disclosed a $28 million seed funding round jointly led by Bitfinex and Hack VC.
Stable is “engineered for USDT”
Stable operates as a layer-1 blockchain focused on facilitating streamlined financial transactions, emphasizing peer-to-peer payments, remittances, and cross-border exchanges.
The project is intricately linked to Tether USDt (USDT), the leading stablecoin by market cap.
According to its website, Stable describes its blockchain as “engineered for USDT,” offering real-dollar settlements with “sub-second finality, gas-free peer transfers, and USDT as the native gas.”
“Utilizing USDT as the native gas token removes the complications of handling volatile tokens solely for digital dollar transfers,” notes Stable’s FAQ.
Besides USDT, Stable is also affiliated with USDT0 (USDT0), a cross-chain liquidity stablecoin launched by Everdawn Labs, per its X account biography and website information.
It remains uncertain whether Stable employs USDT or USDT0 as its native gas token. Cointelegraph reached out to Stable but did not receive a response before publication.
New commerce-focused applications for PYUSD
According to Weber of PayPal, the partnership with Stable seeks to unveil “new commerce-focused applications” for PYUSD.
Introduced in collaboration with Paxos in August 2023, PYUSD has quickly established itself as a significant contender in the stablecoin market, albeit trailing Tether’s USDT, which boasts a $172 billion market capitalization.
Related: Changpeng Zhao’s YZi Labs deepens stake in stablecoin issuer Ethena
As of the time of writing, PYUSD is the 11th largest stablecoin by market cap, valued at approximately $1.4 billion, according to CoinGecko data.
“We’re enthusiastic about our investment in Stable because they’re addressing the vital frontier for stablecoins in emerging markets, where reliable, dollar-based transactions can have the most significant impact,” remarked Amman Bhasin, a partner at PayPal Ventures.
PayPal has not yet responded to Cointelegraph’s press inquiry regarding its collaboration with Stable.
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