PayPal uses stablecoin to invest in blockchain risk management startup

PayPal has used its own stablecoin to make an additional investment in blockchain risk management specialist Chaos Labs.

1 23 September 2024 1 comment

Editorial

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Founded in 2021, New York-based Chaos Labs offers a suite of on-chain risk management tools for decentralised finance (DeFi).

The startup's recently launched Edge decentralised oracle protocol, has already secured a $30 billion over the last two months and has been adopted by exchanges such as Jupiter, the top perpetuals exchange on Solana.

PayPal launched its PYUSD stablecoin on Solana last year and says that its investment - made in PYUSD on-chain - aligns with its ongoing commitment to the blockchain ecosystem.

Having already in put money into Chaos, PayPal Ventures is doubling down in the startup's $55 million Series A round.

Amman Bhasin, partner at PayPal Ventures, says: "Our continued investment in Chaos Labs reflects our belief in their vision to create a safer crypto ecosystem and move more financial services on chain."

PayPal has also previously used PYUSD to invest around $5 million in Mesh, an embedded finance startup for crypto payments.

Comments: (1)

Wayne Akey President at Agile Payments

18 April 2025

Interesting. Just not sure how PayPal drives revenue from payments here. I get that they might just invest for the Chaos upside but where is the play to generate payments fee income?

Is Paypal or their stock owners better served by investing more into Venmo where ACH Payments offer uber low cost and high-margin options?

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