According to external sources, if Stripe buys PayPal for about $53 billion, the real competition is not just PYUSD, but covers the consumer's wallet, the business's digital payment portal for processing and payment settlement. If the deal is made, the penetration of the stable currency in the mainstream payment scene may also accelerate.
The competition is paying distribution capacity
PayPal has more than 400 million active accounts and controls consumer end-products such as Venmo. According to the article, the ability of such users to distribute is more valuable than a single stable brand. For Stripe, the use of stable currency payments would be significantly expanded if the system of its own businesses were connected to PayPal’s consumer-end network.
Industry has indicated to CoinDesk that what is named at the front end of the wallet is not the most critical issue and who is responsible for the liquidation and payment infrastructure behind it. This means that the core of this potential merger is more like competition for a bottom-up network of payments.
PYUSD to stay focused.
If the trade moves forward, the market will first focus on the whereabouts of PYUSD. PYUSD is PayPal's main United States dollar stabilization currency, but its issuer is Paxos, not PayPal itself. Some industry sources believe that Stripe may drive users to move towards OpenUSD, as its existing layout is more oriented towards own networks and internal infrastructure.
In the study, Citi alleged that if Stripe incorporated PayPal ' s stable currency operations into the system, a more complete private digital United States dollar chain could be created, covering distribution, reserve management, clearing lanes and commercial processing. However, there are differing views that PayPal ' s most valuable is the ready-made global distribution capacity, and Stripe does not need to rapidly weaken the PYUSD already held in the user wallet.
Tempo and OpenUSD or benefits
The article mentions the continued expansion of Stripe ' s stable currency infrastructure in recent years. The company had previously acquired Bridge, then launched the block chain network Tempo and joined the Open USD Alliance last month. The coalition also includes Coinbase, Mastercard, Visa and BlackRock, one of the objectives of which is to compete with USDC in terms of institutional and business payments.
According to some interviewees, Tempo’s strategic position would be further enhanced if it also integrated PayPal’s payment network, PYUSD’s circulation scene and OpenUSD’s coalition resources. At that time, Stripe would not only be operating a payment product but might also have a more complete level of stable currency settlement.
The deal will also face regulatory scrutiny.
According to the article, this does not mean that there will be an immediate and violent shuffle in the stable currency market. Citigroup believes that Circe already has an institutional level certification for cross-chain interoperability, while Tempo is still at an earlier stage. At the same time, this potential acquisition could trigger antimonopoly reviews and raise additional issues under the regulatory framework for the new United States Stable Currency.
Additional information:It was mentioned that, in the short term, more pressure might be placed not on USDT and USDC, but on medium-sized stabilization currency projects that lacked both liquidity advantages and commercial distribution channels.