Stripe, which processed $1.9 trillion in transactions last year and was recently valued at $159 billion, is considering acquiring all or part of PayPal (PYPL), according to a Bloomberg report.
Deliberations are in their early stages, the report continues.
If completed, the deal would bring together two major payments companies that have both moved into stablecoins.
PayPal launched its dollar-backed stablecoin in 2022 via the Paxos transmitter. The token has since reached a market value of around $4 billion. It allows users to transfer dollars across crypto networks at any time of the day, often at a lower cost than bank transfers.
Stripe has also delved deeper into the crypto space. In 2024, it acquired Bridge for $1.1 billion, a company that creates tools for crypto companies and projects to issue their own US dollar-backed tokens. Stripe is also working with venture capital firm Paradigm to develop Tempo, a payments-focused blockchain currently in testing.
PayPal has struggled mightily in recent years, with its shares falling about 80% from record highs in 2021. Shares were already higher this week following talk of buybacks, and they rose another 7% late Tuesday following the Stripe report.
Read more: Stripe’s Bridge sees stablecoin volume quadruple as utilities insulate from ‘crypto winter’
