In a groundbreaking move, YouTube has announced that creators in the US can now opt to receive their payouts in PayPal’s dollar-backed stablecoin, PYUSD. This development marks a significant step for one of the largest creator platforms as it weaves deeper into the fabric of cryptocurrency.
May Zabaneh, head of PayPal’s crypto division, confirmed to Fortune that this feature is currently live, specifically targeting US-based YouTube users.
A spokesperson from Google has also acknowledged that creator payouts via PayPal’s stablecoin are now operational, although they refrained from providing additional specifics about the arrangement.
Big Tech’s Push Into Tokenized Money Expands with YouTube’s Adoption of PYUSD
Earlier in Q3, PayPal introduced an option for payment recipients to receive funds in PYUSD instead of traditional cash balances. In light of this, YouTube opted to extend this capability to its creators who earn a share of revenue from advertisements and video subscriptions.
Zabaneh elaborated that the current framework allows PayPal to manage the entire crypto aspect of the transactions. Essentially, while YouTube continues to conduct its financial dealings in fiat currency, PayPal takes charge of converting payouts into PYUSD for those creators who choose this method. This reduces the complexity concerning technical and regulatory issues for YouTube.
This strategic shift occurs as major tech players increasingly embrace stablecoins and tokenized forms of money. Companies like Google have shown heightened interest in crypto infrastructure, bolstered by a resurgence of digital asset enthusiasm within Silicon Valley. For YouTube, the ability for creators to earn in stablecoins enhances its monetization mechanisms without necessitating a fundamental redesign of its core business model.
Trump-Era Stablecoin Regulations and Major Deals Drive Tokens into Mainstream Finance
Stablecoins like PYUSD, which maintain their value relative to assets such as the dollar, have traditionally been a fundamental component of crypto trading. Over the past year, these tokens have started to penetrate broader financial sectors, aided by new federal regulations on stablecoins signed into law during Donald Trump’s presidency and various high-profile corporate acquisitions.
For instance, the payments giant Stripe completed a $1.1 billion acquisition of the stablecoin firm Bridge in February, showcasing the growing interest in stablecoin adoption.
PayPal has emerged as a frontrunner among tech and payment companies regarding stablecoin adoption. The platform began allowing users to buy and sell Bitcoin, Ethereum, and a few other cryptocurrencies in 2020, and launched PYUSD in 2023. The stablecoin has since achieved a market valuation of nearly $4 billion, becoming central to PayPal’s on-chain strategy.
PYUSD Penetrates the Market as PayPal Integrates Its Stablecoin into Everyday Transactions
Since its debut, PayPal has seamlessly integrated PYUSD throughout its ecosystem. Users can hold the stablecoin in their main PayPal wallet and Venmo, spend it with participating merchants, and even utilize it as a payment method for small to medium-sized businesses.
The inclusion of YouTube as an additional platform effectively broadens the reach of PYUSD to millions of creators who may favor the stability of a dollar-backed cryptocurrency over traditional banking payouts.
This isn’t the first instance in which Google has engaged directly with PYUSD. Previously, an executive from Google Cloud mentioned that the cloud division had accepted PYUSD payments from two clients, indicating the company’s willingness to experiment with on-chain transactions where applicable.
The partnership between YouTube and PayPal in implementing stablecoin payouts demonstrates the clear trajectory towards tokenized finance, providing creators with new options while setting a precedent for other platforms to consider similar integrations.
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