PayPal Adds Bitcoin, Ethereum to Peer-to-Peer Payments

Global financial giant PayPal (PYPL) expanded its crypto venture by integrating more assets into its peer-to-peer payment. The $63 billion firm is taking advantage of the new trend. There, institutions and governments are exploring faster means of making payments with ease.

PayPal’s stablecoin market cap is also growing. This is due to the addition of other assets that are expected to enhance its adoption further. Stablecoin supply was reaching unprecedented heights.

However, the Bank of England has proposed a cap for individual ownership in the UK of not more than £20K. This move has seen backlash from key industry leaders, such as Stani Kulechov, the founder and CEO of Aave Protocol.

In the meantime, here are more details about the launch of crypto payments on PayPal via links with full support on the horizon.

PayPal To Support Bitcoin, Ethereum, PYUSD Crypto Payments

In a video teased on X (formerly Twitter), PayPal announced that its 434 million users could send and receive money. These U.S. participants will easily send the payment as a text message.

PayPal announced that users will make these payments by sharing a one-time link via text, direct message, or email. The PayPal payment method will support Bitcoin (BTC), Ethereum (ETH), PayPal USD (PYUSD), and more.

These crypto assets would be auto-converted to fiat or PYUSD upon user withdrawal. More importantly, the transaction fees were less than 1%, with APY rewards for PYUSD likely pushing this adoption slightly higher.

The enabled platforms that would support these payments included Venmo and other digital wallets with crypto support across the globe. PayPal CEO Alex Chriss hinted at this huge milestone in February of this year.

His hints involved a video with PYUSD options on Solana, BTC, and ETH. Chriss said, “With PayPal, consumers can seamlessly use crypto to pay at millions of merchants.”

According to CryptoQuant data, exchange reserves, stablecoin flows, funding rates, open interest, and whale activity affirmed this shift. PayPal is expanding its crypto offerings.

It is positioning itself to become a key player in the stablecoin market. This move also strengthens its role as a dominant force in digital payments.

PayPal USD Metrics As Stablecoin Supply Heightens

The total supply of PayPal USD was $1.40 Billion, but the transfer volume was flat for the last three months. However, the two metrics have been rising steadily since the venture into blockchain usage.

At that time, daily transactions amounted to about $52 million. On the other hand, the cumulative volume exceeded the $48 Billion mark.

Classifying the transfer volume by chain, Ethereum’s PYUSD was approaching $1.40 Billion for the week. PayPal’s highest transfer volume was recorded in February and mid-August, according to Token Terminal data.

Meanwhile, MetaMask also launched its stablecoin (mUSD), which was built with Stripe’s subsidiary. The stablecoin will support swaps, bridging, and soon the MetaMask Card on Ethereum and Linea Build.

Overall, the total stablecoin supply surged to a new all-time high of $285 Billion. It is more than 1480% since the last bull run of 2021.

More dollars were moving into blockchain, almost double the supply in 2021. The U.S. recently streamlined legislation through the Stablecoin and GENIUS Acts, fueling this surge.

Altogether, these trends pointed to more firms and individuals shifting settlements on the blockchain with low fees, security, and speed. The rising stablecoin supply could impact crypto markets, driving them higher with momentum.