PayPal Expands Crypto Strategy with PYUSD Stablecoin and AI-Powered Payments Despite $81M Loss

PayPal is expanding its crypto strategy by integrating its PYUSD stablecoin, agentic AI payments, and biometric tools, despite recording an $81 million crypto-related hit in Q2 2026. The company beat Q2 revenue estimates with $8.68 billion and raised its full-year EPS guidance to $5.38. Additionally, Kraken added PYUSD support on Stellar, and CEO Enrique Loras noted PayPal remains open to a better acquisition offer than Stripe and Advent's $53 billion bid.

PYUSD stablecoin global expansion

• ▪PayPal's PYUSD stablecoin, which launched in 2023, has expanded its reach to users in 70 markets worldwide as of July 29, 2026
• ▪PayPal's PYUSD stablecoin allows users to buy, hold, send, and receive the token within PayPal accounts and transfer it to external wallets
• ▪PayPal is deploying native dollar liquidity for its PYUSD stablecoin across multiple blockchain networks, including Ethereum, Solana, and Stellar

PayPal Q2 earnings results

• ▪PayPal raised its full-year 2026 earnings per share guidance to $5.38, reversing a warning from April 2026 that profits could fall
• ▪PayPal reported second-quarter 2026 revenue of $8.68 billion, beating Wall Street estimates, while its stock fell about 2% following a soft third-quarter outlook
• ▪PayPal reported a second-quarter 2026 GAAP EPS of $1.26, missing the forecasted $1.28

Crypto-related investment loss

• ▪PayPal recorded an $81 million non-GAAP adjustment tied to its cryptocurrency and strategic investment holdings during the second quarter of 2026
• ▪The $81 million cryptocurrency-related adjustment contributed to PayPal missing its second-quarter 2026 earnings per share forecast

Kraken PYUSD Stellar integration

• ▪The integration of PYUSD on the Stellar Network via Kraken enables users to make deposits and withdrawals using fast, low-cost cross-border rails
• ▪Kraken Exchange added support for PayPal's PYUSD stablecoin on the Stellar Network during the week of July 29, 2026

Agentic AI payment features

• ▪PayPal plans to spend the remainder of 2026 and much of 2027 modernizing its technology and rebuilding its consumer business
• ▪PayPal is integrating agentic artificial intelligence-driven payments and biometric identification tools into its core long-term strategy as of July 2026

Stripe Advent acquisition bid

• ▪PayPal Chief Executive Officer Enrique Loras stated that the company remains open to a better acquisition offer than the Stripe and Advent bid
• ▪Stripe and private equity firm Advent launched a takeover bid for PayPal at $60.50 per share