PayPal (PYPL) Commits to Boosting Cryptocurrency Adoption, With Emphasis on USD PYUSD/USD Stablecoin

Fintech giant PayPal Holdings Inc. (NASDAQ:PYPL) is committed to boosting cryptocurrency adoption, with a particular emphasis on its PayPal USD PYUSD/USD stablecoin, CEO Alex Chriss said Tuesday during the company's first-quarter earnings call.

"We are making strides and moving quickly to bring the benefits of cryptocurrency and stablecoins to our users," Chriss explained as the company continues to navigate the complexities of the crypto landscape.

"Last week, we introduced the ability to earn rewards for holding PYUSD. This will increase the adoption and use of digital currencies for everyday commerce, from sending money internationally to making purchases and more."

The top executive highlighted that PayPal has been strengthening its ties with cryptocurrency industry giants such as Coinbase Global Inc. (NASDAQ:COIN) to facilitate easier access and usage of PYUSD.

Moreover, the company's strategic move to add PYUSD to the Solana (CRYPTO:SOL) blockchain is seen as an attempt to expand its crypto-related services. This move is in line with the rising dominance of stablecoins in the global financial system, as highlighted by tech investor Chamath Palihapitiya. He noted that the weekly transaction volumes of stablecoins have surpassed that of Visa Inc. (NYSE:V).

"The weekly volumes of stablecoins are now larger than Visa's overall volumes. It's no longer a question of if or when, but rather when we'll hit $1 trillion in weekly volumes," Palihapitiya stated.

PYUSD, which was launched last year on the Solana blockchain, currently has a market capitalization of $880 million, ranking it as the sixth-largest stablecoin overall.

PayPal enables customers to buy and sell cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which can then be used for online purchases.

The company reported its first-quarter financials on Tuesday, beating earnings predictions but falling short of revenue expectations.

PayPal's shares dipped 0.24% in after-hours trading. The stock closed up 2.14% at $66.32 during Tuesday's regular trading session. Year-to-date, the stock has lost over 22% of its value.

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PayPal recorded a moderate reading on some of its key indicators, including momentum, growth, and quality. Check out the Benzinga Edge Stock Rankings to see how rival fintech firms stack up.