PayPal and Venmo Integrate Support For ENS Names

PayPal is becoming increasingly embedded in web3.

Ethereum Name Service (ENS) announced that PayPal and its subsidiary, Venmo — which have a combined 500 million users — integrated support for ENS domain names on Sept. 10.

The integration allows PayPal and Venmo users to transfer cryptocurrencies using ENS names instead of wallet addresses. ENS allows users to link their alphanumeric cryptocurrency wallet addresses to easily readable “.eth” domain names, simplifying the web3 user experience.

“We are excited to bring ENS’ naming capabilities directly into the hands of millions of users, through Venmo, PayPal Mobile, and PayPal Web,” said Khori Whittaker, Executive Director at ENS Labs. “As the world of digital assets becomes more mainstream, our goal is to ensure managing those assets is as intuitive and user-friendly as possible.”

ENS was launched in May 2017. More than 4 million names have been registered through the ENS platform since, according to ENS.

PayPal’s web3 push

Since 2020, PayPal users have been able to buy, hold, and sell cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin directly through their accounts. This service was made possible by a partnership with Paxos Trust Company, a U.S.-based regulated provider of cryptocurrency services.

In 2021, Venmo, also rolled out a similar feature, enabling its users to buy, hold, and sell cryptocurrencies within the app.

PayPal launched the PayPal USD (PYUSD) stablecoin in collaboration with Paxos last August. PYUSD, now the fifth largest stablecoin, is backed by U.S. dollar deposits, short-term U.S. Treasuries, and other cash equivalents to maintain a 1:1 ratio with the U.S. dollar. PYUSD is issued as an ERC-20 token on the Ethereum blockchain.

In May, PYUSD was integrated with the Solana blockchain, with Crypto.com, Phantom, and Paxos providing on-ramps to the network.

PYUSD’s market cap surpassed $1 billion on Aug. 24, roughly 12 months after its initial launch, according to CoinGecko. However, its market cap has since dropped to $860.9 million after tagging a high of $1.04 billion on Aug. 28.

Solana accounts for the lion's share of the decline, with PYUSD’s market cap dropping 21.5% to $507.5 million over the past fortnight, while its Ethereum deployment is down just 3% at $351.8 million over the same period.