Shift in Crypto Economy: From Speculation to Services
The focus of the cryptocurrency sector is transitioning from speculation to service-oriented offerings. PayPal has introduced peer-to-peer cryptocurrency transfers, expanding its footprint in digital assets. Its stablecoin, PYUSD, has already exceeded $1 billion in market capitalization.
Google is testing a payment protocol for AI agents, which includes support for stablecoins, highlighting the potential role of dollar-pegged cryptocurrencies in the evolving web economy.
Bitcoin miners are experiencing tighter margins due to rising costs and increased competition. However, some companies are thriving by diversifying into data centers and AI infrastructure, resulting in significant stock price increases in recent weeks.
This week's Crypto Biz examines PayPal's P2P rollout, the changing economics of Bitcoin mining, Google's open-source AI payment initiative, and Bitwise's proposal for a new ETF focused on stablecoins and tokenization.
PayPal is enhancing its peer-to-peer services with a new feature allowing US users to send and receive cryptocurrencies directly within PayPal and Venmo, bypassing external exchanges. The service, known as PayPal links, generates one-time links that can be shared via text, email, or chat, and will extend to Venmo for direct transfers of cryptocurrencies and PayPal's stablecoin, PYUSD.
Shares of major Bitcoin mining companies have surged over the past month, reflecting investor optimism in miners expanding beyond crypto into data centers and AI infrastructure. According to The Miner Mag's latest report, public miners like Cipher Mining, Terawulf, Bitfarms, Hive Digital Technologies, and Iris Energy have each gained at least 73% over the past month.
Google has launched an open-source protocol enabling AI agents to accept payments, developed with partners like Salesforce and American Express. The protocol supports stablecoin transactions, underscoring the growing importance of dollar-pegged digital assets in the AI-driven economy.
Bitwise has filed to launch a new ETF focused on stablecoins and tokenization, aiming to capture the growing segments of blockchain adoption. The fund will track an index of companies involved in the sector, including stablecoin issuers, payment processors, and crypto exchanges.