Paypal expands crypto offerings with Solana, Chainlink integration

PayPal announced plans to allow US users to buy, sell, and transfer Solana (SOL) and Chainlink (LINK) through its core platform and Venmo, marking the latest expansion in the payments giant’s crypto offerings.

The rollout, set to take place in the coming weeks, will increase PayPal’s supported digital assets to seven and respond to growing user demand for broader token access, according to an April 4 press release.

By adding Solana and Chainlink, two assets known for their decentralized infrastructure and enterprise utility, PayPal aims to cater to a broader segment of crypto users, from retail investors to developers and data providers.

The update comes amid continued volatility in the crypto market but reflects PayPal’s long-term bet that digital assets will become a core component of digital commerce.

PayPal CEO Alex Chriss, who took over in late 2023, has not spoken publicly about the company’s crypto roadmap, but his predecessor, Dan Schulman, was an outspoken advocate for blockchain integration, stating in 2022 that “the intersection between digital currencies and the digital wallet is a clear opportunity.”

With the addition of SOL and LINK, PayPal is reinforcing its role as a bridge between traditional payment infrastructure and blockchain-based finance.

Crypto expansion

The move highlights PayPal’s broader strategy to integrate blockchain-based assets into consumer financial tools. The company first entered the crypto market in October 2020, when it enabled US customers to buy and hold Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) within its app.

That launch was followed by crypto checkout functionality in March 2021, allowing users to spend digital assets at millions of merchants by automatically converting them into fiat at the point of sale.

In 2023, PayPal became the first major US financial platform to issue its own US dollar-backed stablecoin, PayPal USD (PYUSD), through a partnership with regulated issuer Paxos. The token’s launch marked a significant milestone, attracting attention from lawmakers and regulators as the debate over stablecoin oversight intensified.

According to DeFiLlama, as of August 2024, PYUSD briefly surpassed $1 billion in market capitalization before stabilizing around $760 million in circulation.

While the figure is modest compared to stablecoin giants like Tether (USDT) and USD Coin (USDC), analysts view PayPal’s involvement as a signal of growing institutional confidence in the sector.

In October, PayPal completed a business-to-business transaction using PYUSD to settle an invoice with consulting firm Ernst & Young, showcasing the stablecoin’s use in corporate finance.