The infrastructure is being built.

Actually, we are seeing the hybrid system evolving where existing rails are being altered to accept cryptocurrency.

One of the longstanding companies in the world of digital payments is PayPal. This was one of the early companies to offer widespread payments for online businesses. Of course, this created what is now known as the PayPal Mafia, a number of tech billionaires who got their start with the company.

Elon Musk and Peter Thiel are two examples.

The company saw the potential of crypto a couple years ago. It was one of the first payment providers to bring out its own stablecoin, PYUSD.

Now they are expanding the payment system.

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PayPal To Enable Payments In 100 Cryptocurrencies

The company is looking to get a jump on the banks. With the passing of the GENIUS Act, which the President signed into law, we see the potential for a major battle shaping up.

PayPal is one of the leading FinTech companies. The only payment world is wide open with regards to crypto. Many, including myself, believe the banks are going to make a statement. PayPal is one that is not willing to give up the fight.

PayPal has unveiled a new payment option that will enable small businesses to accept dozens of cryptocurrencies. The tokens will be converted into the PayPal-branded, Paxos-managed PYUSD stablecoin, which is increasingly being folded into the fintech giant’s business model.

Catering to small businesses is something that PayPal long excelled at. It started with many websites when they were just beginning. Over time, some grew to rather large in scale. However, the majority of sites still have minimal transaction numbers.

This does not matter to PayPal. It looks at the collective, understanding the size of the digital world.

Crypto is simply another step in the evolution.

"Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we're removing these barriers and helping every business of every size achieve their goals," PayPal CEO Alex Chriss said Monday in a statement.

There is massive incentive for PayPal to get into this. Payment fees add up rather quickly.

PayPal will begin by charging 0.99% transaction fees in the first year, which will then be increased to 1.5%, which the company argues is notably low "compared to international credit card processing."

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Crypto Value Being Transferred

Many have long looked at crypto as a medium of exchange. Anyone who regularly reads these articles knows I disagree with that idea. To me, stablecoins, as evidence by PYUSD, are the transfer of value mechanism.

What PayPal, and others are doing, is enabling the conversion of value from other currencies. In other words, PYUSD is the payment token.

This is a big step because we are looking at near $3T in value that crypto has accrued so far. It is a number that is likely to move much higher over the next few years.

Essentially, we have a lot of potential economic capability locked up in crypto. By unleashing the value, a major economic boom could ensue. This is all part of the economic transformation that is coming due to AI, which is tied closely to crypto in my opinion.

We have two major rails being established.

First there is the financial sector. This is something that crypto has done a decent job setting up. However, the moves by Wall Street the last couple years show the explosiveness of it.

The second is commercial. This is where businesses start to interact with crypto or utilize tokenization in some form. Here is where things are a bit stalled.

PayPal is one company that can accelerate things. It already has a large customer base which are conducting transactions on a daily basis. To incorporate crypto means the usage will likely grow in a short period of time.