Jose Fernandez da Ponte, PayPal's Senior Vice President of Digital Currencies, emphasized the critical role banks must play in unlocking the full potential of stablecoins during Consensus 2025 in Toronto. He argued that banks' infrastructure—including custody and fiat rails—is vital for stablecoins to scale effectively beyond crypto-native users. This insight coincides with ongoing efforts in the U.S. Congress to pass stablecoin legislation that would bring regulatory clarity and welcome banks into the stablecoin ecosystem.
Fernandez da Ponte noted that although Tether (USDT) and Circle's USDC dominate the stablecoin market, nearing 90% of the $230 billion asset class, PayPal’s own dollar-backed stablecoin PYUSD, launched in 2023, is growing steadily but remains smaller with a $900 million supply. He highlighted that metrics like transaction velocity, active wallets, and real usage are more important indicators of success than market capitalization alone.
Anthony Soohoo, CEO of MoneyGram, echoed the optimism, noting that clear legislation will create trust and spur more issuers to enter the market, followed by consolidation. Soohoo also emphasized stablecoins’ growing role in providing cash access in volatile economies via MoneyGram’s extensive cash-access locations.
At Consensus 2025, Fernandez da Ponte also detailed PayPal’s strategic aspiration for digital assets: to be the "gateway product" that enables consumer access to Bitcoin, Ethereum, and stablecoins through a seamless, regulated platform. PYUSD serves as a bridging asset between traditional fiat and blockchain finance, with integrations across merchants, Web3 wallets, and DeFi. PayPal’s extensive compliance measures and regulatory engagement position it well to advance this strategy globally.
The company plans to expand PYUSD’s reach internationally and improve crypto onramps, emphasizing regulatory compliance alongside innovation. The success of PYUSD could establish it as a preferred stablecoin for everyday commerce, facilitating blockchain integration for millions of users and bridging traditional and digital finance.