Global payments platform PayPal has recently announced the expansion of its cryptocurrency services to include two prominent digital assets: Chainlink (LINK) and Solana (SOL). This initiative allows users in the United States to buy, sell, and transfer these popular tokens, enhancing PayPal’s already robust cryptocurrency portfolio.
Support for LINK and SOL will be rolled out over the next few weeks, and this update will also apply to Venmo, PayPal’s mobile payment platform that is widely used across the U.S. PayPal disclosed this development on April 4, highlighting the company’s commitment to meeting growing consumer demand for digital currencies.
According to the latest reports, Venmo attracted approximately 83 million users at least once in 2023. PayPal’s global reach extends to about 428 million accounts as of December, with a significant portion of these accounts based in the United States. However, it is important to note that PayPal’s cryptocurrency services are exclusively available to U.S. residents.
May Zabaneh, an executive within PayPal’s crypto and blockchain division, emphasized that the addition of more tokens is a response to the increasing demand from consumers. She stated, “Offering more tokens on PayPal and Venmo provides users with greater flexibility, choice, and access to digital currencies.” Currently, PayPal’s offerings encompass a total of seven digital assets, including its own payment stablecoin, PayPal USD (PYUSD).
PayPal’s Stablecoin Endeavors
The introduction of PYUSD in 2023 marked a significant milestone for PayPal in the cryptocurrency sector. Within a year of its launch, PYUSD saw its market capitalization surpass the $1 billion mark for the first time. Since then, however, this figure has adjusted, with the circulating supply currently around $760 million.
In an effort to establish the utility of PYUSD, PayPal successfully settled an invoice with global consulting firm Ernst & Young in October for an undisclosed amount. Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, commented on the significance of stablecoins in enterprise transactions, saying, “The enterprise environment is very well-suited for stablecoin payments.”
While PYUSD’s market supply is modest compared to leading stablecoins such as USDt (USDT) and USDC, the importance of PayPal’s contributions to the sector is noteworthy. Polygon Labs CEO Marc Boiron acknowledges companies like PayPal and Stripe as pivotal in promoting stablecoin adoption during a time when regulatory and enterprise acceptance of blockchain technology was still in its infancy.
As the cryptocurrency landscape continues to evolve, PayPal’s initiatives reflect a broader trend towards integrating digital assets into everyday financial ecosystems. With the addition of Chainlink and Solana, PayPal is positioning itself as a formidable player in the realm of cryptocurrency, catering to an increasingly engaged user base.
