Key Takeaways
- YouTube decides to pay its creators in PayPal’s stablecoin PYUSD.
- YouTube is extending its relationship with PayPal. YouTube is already a customer of PayPal, and through this new move, Google is extending its footprint in crypto.
- The US government’s regulatory clarity adds confidence to Big Tech in entering the crypto realm.
- PYUSD is setting the stage for a crypto revolution within Big Tech.
With cryptocurrencies becoming a popular choice among the general public, Big Tech is slowly entering the crypto realm. The latest news that validates this comes from YouTube, as it announces that content creators can now redeem their YouTube payments in PayPal’s stablecoin PYUSD.
May Zabaneh, head of crypto at PayPal, directly confirmed the matter to Fortune, a global business magazine that covers everything from global business to corporate strategies. Zabaneh also said that the feature of redeeming payments in PYUSD is available only to US customers at the moment.
From PayPal to YouTube
A representative from Google confirmed that the decision is true and final but did not comment further. While YouTube is already a customer of PayPal in terms of payment processing, it has never before used PayPal’s PYUSD to credit its creators. According to May Zabaneh, this integration is groundbreaking as YouTube does not need to handle any crypto-related transactions; however, its creators can choose to receive their funds in crypto.
According to Zabaneh, the product’s beauty lies in its capability to remove any technical complexities for YouTube, PayPal’s client.
PayPal had already integrated the stablecoin payment into its platform in the third quarter. Even though YouTube was a long-time partner of PayPal, it is only now that they have integrated YouTube’s payments to its creators using PayPal’s stablecoin. The creator community has welcomed the decision as another payment method adds a layer of security and convenience, according to them.
The Entry of Big Tech Into The Stablecoin Realm
It is rumored that this specific move is part of Google’s interest in the crypto industry. Even though multiple factors triggered this entry, the underlying reason could be the hype regarding crypto and blockchain in Silicon Valley and beyond. The increasing interest of the US government could have also become a factor, according to experts.
YouTube’s decision to pay its creators in PYUSD is just one stone in the foundation of building a new era in the digital economy. Earlier this year, in February, Stripe, one of the most recognised global payment infrastructure providers, acquired the stablecoin startup Bridge for a whopping 1.1 billion US dollars.
As industry experts are studying this new behavior of fintech giants, they have come across the obvious fact that could be fueling this transition: the US government. Stablecoins like PYUSD are crypto assets that are pegged to the fiat currency USD or the US dollar. However, since the Trump administration has taken over White House, stablecoins have become more important than ever. After the US President Donald Trump signed a regulatory framework as a new law for cryptocurrencies, the industry has exploded with activity. Stablecoin demands have skyrocketed since, and it is no wonder that with the world’s largest economy on its side, these stablecoins start to look pretty lucrative to Big Tech.
The PYUSD Revolution And Big Tech
Even though PayPal had long ago integrated crypto onto its platform, it was only recently, in 2023, that PayPal released its in-house stablecoin, the PYUSD. Thanks to PayPal’s popularity and a rather huge user base spanning over the borders, PYUSD today has a market capitalization of nearly four billion US dollars.
Since 2023, PayPal has slowly introduced its maiden crypto project to its customers. The concept of a USD-backed stablecoin issued by one of the most reputable fintech companies in the world soon gained traction, and PayPal users who were crypto enthusiasts made a transition from the then-popular USDt and USDC to PYUSD. According to market data, PYUSD grew from a 0% market share since its inception to 1% market share today. This marks an important victory for PayPal and PYUSD.
When entering the crypto market, Big Tech is sure to take careful, well-planned, and strategic steps. By partnering with a veteran from the fintech industry, Google has taken a smart new step into the world of stablecoin. This is a promising venture as more companies will follow suit.
With crypto once again seeping into everyday finance, the revolution has begun, it seems. What lies ahead is still uncertain; however, there is great scope for both crypto and Big Tech to thrive in a symbiotic relationship.
