"Stripe considers acquiring parts of PayPal (NYSE: PYPL). If finalized, this move could unite two major payment firms exploring stablecoins. Both companies
In a potential significant move for the payment industry, tech company Stripe is reportedly deliberating over an acquisition of all or parts of PayPal (NYSE: PYPL), according to Bloomberg. The discussions are said to be in preliminary stages.
If finalized, the merger would unite two prominent payment firms that have both ventured into stablecoins, digital assets pegged to traditional currencies. PayPal launched its dollar-backed stablecoin PYUSD $1.0010 in 2022 through issuer Paxos, which has since amassed a market value of approximately $4 billion.
Meanwhile, Stripe has been expanding its crypto footprint. In 2024, it acquired Bridge for $1.1 billion, a company specializing in tools for businesses and crypto projects to issue their own U.S. dollar-backed tokens. Additionally, Stripe is collaborating with venture firm Paradigm on Tempo, a payments-focused blockchain currently under development and testing.
PayPal has faced significant challenges in recent years, with its stock plummeting approximately 80% from its 2021 record highs. The company's shares have already seen an uptick this week due to buyout speculation, and they experienced an additional 7% surge late Tuesday following the Stripe report.
For more insight on Stripe's Bridge and its growing stablecoin volume amid the "crypto winter," readers are referred to a related article titled "Stripe's Bridge sees stablecoin volume quadruple as utility insulates from 'crypto winter'."
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