PayPal’s Crypto Strategy Grows as PYUSD Enters Earnings Spotlight

PayPal placed stablecoins and blockchain-based payments among its strategic growth areas as the company reported its second-quarter results on July 28. The payments giant generated $8.68 billion in revenue during the three months ending June 30, up 5% from a year earlier.

The company processed $486.4 billion in total payment volume, representing a 10% annual increase. Payment transactions rose 8% to 6.8 billion, while the number of active accounts remained broadly unchanged at 439 million, according to PayPal’s Q2 earnings release.

Crypto assets also appeared in the company’s earnings reconciliation. PayPal recorded an $81 million non-GAAP adjustment covering net losses from strategic investments and crypto assets held for investment. That compared with a $12 million gain from the same category in the second quarter of 2025.

PayPal does not break out how much of the adjustment came specifically from crypto. The company said it excludes these gains and losses from its non-GAAP results because it does not actively trade the assets or depend on them to finance regular operations.

Stablecoins Become a Bigger Part of PayPal’s Network

The earnings update comes as PayPal expands the reach of PayPal USD, or PYUSD. The dollar-pegged stablecoin is issued by Paxos and backed by US dollar deposits, short-term Treasury securities, and similar cash equivalents.

PayPal is preparing to make PYUSD available through accounts in around 70 markets. Eligible users can buy, hold, transfer, convert, and receive the asset without leaving the company’s platform. PYUSD also supports external transfers through networks such as Ethereum and Solana.

The company currently offers a variable 4% annual reward to eligible customers who hold PYUSD in their PayPal accounts. Rewards accrue based on average daily balances and are distributed monthly in the stablecoin.

Crypto Push Extends Beyond Token Trading

PayPal’s strategy increasingly focuses on using blockchain assets for payments rather than limiting crypto services to buying and selling tokens.

Businesses can accept PYUSD through PayPal Checkout, while users can transfer the stablecoin between PayPal, Venmo, exchanges, external wallets, and supported blockchain networks. PayPal has also positioned PYUSD as a tool for cross-border transfers and merchant settlement.

The company reported GAAP diluted earnings of $1.25 per share, down 3% year over year, while non-GAAP earnings reached $1.38 per share. PayPal also raised its full-year non-GAAP earnings guidance to approximately $5.38 per share.

The next development to watch will be whether wider PYUSD availability translates into sustained payment volume outside PayPal’s existing crypto services.