CoinDesk
Swift said Tuesday it would expand a blockchain-based settlement network after completing pilot work with 17 global banks, with more than 40 financial institutions now signed on. Hours later, Stripe launched an unsolicited $53 billion bid for PayPal, a deal that would marry one of the world's largest merchant payment networks with one of the biggest consumer wallet businesses. PayPal's board, per Reuters, views the offer as undervaluing the company and faces regulatory and financing headwinds.
Swift connects more than 11,500 financial institutions and handles messaging for trillions in cross-border payments. Stripe processes hundreds of billions a year for millions of businesses. PayPal has more than 439 million active accounts and processed $1.79 trillion in 2025, plus a Paxos-issued USD stablecoin that already bridges traditional finance and digital assets.
Why it matters
Executives and analysts across crypto and fintech told CoinDesk the competitive focus has shifted from proving blockchain rails to controlling distribution. Ouinex CEO Ilies Larbi called it a race to control the next generation of global payments infrastructure. Meld founder Pankaj Bengani said the contest has moved from proving the technology works to owning distribution, and that stablecoins have graduated from experiment to core payments infrastructure.
Jason Li, co-founder of Solayer and CEO of MPCVault, framed the Stripe-PayPal logic bluntly: "Getting 400 million people to actually use a stablecoin is what costs $53 billion." Dragonfly GP Rob Hadick added that Stripe and PayPal run similar payment volume but Stripe earns roughly one-fifth the net revenue, making the deal financially accretive beyond the stablecoin angle. Cap CEO Benjamin Sarquis Peillard expects more fintechs to launch their own stablecoins rather than adopt legacy issuers like USDC.
Market impact
Citi analysts wrote in a research note that stablecoin competition has become a default-setting game, with scale accruing to whichever coin becomes the default across the largest merchant, consumer wallet or autonomous transaction base.
Frequently asked questions
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What did Stripe and Swift announce this week?
Swift said Tuesday it would expand a blockchain-based settlement network after pilots with 17 global banks, with more than 40 financial institutions now signed on. Stripe then launched an unsolicited $53 billion bid for PayPal, aiming to merge a major merchant network with a 439M-account consumer wallet.
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Why is Stripe interested in PayPal for stablecoin payments?
PayPal already runs 439M+ active accounts, processed $1.79T in 2025, and issues a Paxos-based USD stablecoin. Solayer's Jason Li said the value is no longer in issuing another stablecoin but in reaching consumers, adding that getting 400M people to actually use one is what costs $53 billion.
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How does the Swift blockchain network fit into this competition?
Swift connects more than 11,500 financial institutions and handles messaging for trillions in cross-border payments. Its expanded blockchain settlement network, now with 40+ banks after pilot work with 17, is the incumbent answer to tokenized cross-border rails.
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What did analysts say about the stablecoin competitive landscape?
Citi analysts wrote that stablecoin competition has become a default-setting game, with scale accruing to whichever coin becomes the default across the largest merchant, consumer wallet or autonomous transaction base. Cap's CEO expects more fintechs to launch their own stablecoins rather than adopt legacy issuers like…
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What are the main obstacles to the Stripe-PayPal deal?
PayPal's board told Reuters it sees the offer as undervaluing the company. Dragonfly's Rob Hadick flagged that executing M&A integration at this size is incredibly hard, and the deal faces regulatory and financing challenges.
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