PayPal Continues Revamp with New CEO, Crypto Hub, and Stablecoin

Whether one is purchasing an item on eBay, sending an invoice for services rendered, or giving a gift – PayPal and digital value transfer go hand-in-hand.  Now, after capitalizing on a mini-boom in activity during COVID, when online shopping sharply increased, the company has seen its stock and usage begin to wane.  Not content to sit idle, PayPal is clearly undergoing a revamp as it attempts to continue an upward trajectory.  In the past few weeks, this has come in the form of announcements detailing a new President and CEO, the launch of its own stablecoin, and the opening of a ‘cryptocurrency hub'.

Alex Chriss – President and CEO at PayPal

PayPal has just announced that its current CEO, Dan Schulman, is set to step down on September 27th and transition to a role as a Director.  In his stead, PayPal has hired Alex Chriss, who has had an influential hand in the growth of Intuit in past years.

On his appointment, Chriss states that,

“PayPal is an extraordinary company that plays a critical role in the lives of consumers and merchants all over the world…Throughout my career, I have championed small and medium businesses and entrepreneurs, who are the backbone of every economy in the world. I am proud to take the baton from Dan and thrilled to have the opportunity to work with PayPal's talented and committed team to build on PayPal's remarkable history and draw on its unique capabilities to deliver outstanding products and services to businesses and consumers.”

PayPal describes Chriss as a “seasoned and highly successful business leader, steeped in technology and product leadership experience,”.

A Homegrown Stablecoin – PYUSD

It has now been one week since PayPal announced that it is launching its very own stablecoin, known as PayPal USD (PYUSD).  This offering, which is made possible through a strategic partnership with token issuer Paxos Trust, is set to be tethered to the U.S. Dollar and built atop the Ethereum network.  In order to ensure the asset remains tethered to the USD, PayPal notes that it will be utilizing a basket of “…U.S. dollar deposits, short-term U.S. Treasuries and similar cash equivalents”.

This stablecoin offering comes at a time when PayPal is clearly making a strong push into the digital asset sector.  With its COVID boom having dissipated long ago, the company is now leaning into digital assets.

An Expansion of Capabilities – The Cryptocurrency Hub

In order for PYUSD and its existing digital asset services to thrive and draw in customers, PayPal is also revamping what it refers to as its Cryptocurrency Hub.  Here, services on offer will include the ability to,

• Buy Crypto Assets;
• Hold Crypto Assets;
• Sell Crypto Assets, including to use the proceeds to pay for purchases through your PayPal account;
• Convert between PYUSD and another Crypto Asset;
• Send Crypto Assets;
• Receive Crypto Assets; and
• View market information and educational content.

Essentially, PayPal is turning its Cryptocurrency Hub into a comprehensive offering that will provide users with nearly any service they would ever need surrounding digital assets.

Final Word

Naturally, there is a healthy amount of excitement surrounding each of these developments.  While there is no substitute for self-custody of one's assets, the ability to easily access and actually spend digital assets on a platform as widely accepted as PayPal is a major step towards true mainstream adoption.