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PayPal Holdings: Stablecoin Gamble Grows As Lawsuit Looms

PayPal Holdings: Stablecoin Gamble Grows As Lawsuit Looms

PayPal Holdings ( (PYPL) ) has been popular among investors this week. Here is a recap of the key news on this stock.

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PayPal Holdings is pushing deeper into digital assets even as investor pressure mounts. The company expanded its U.S. dollar-backed stablecoin, PYUSD, to 70 countries across Asia-Pacific, Europe, Latin America, and North America, adding new markets like Colombia, Peru, and Singapore. Users can now buy, hold, transfer, and cash out PYUSD within PayPal, while merchants benefit from near-instant cross-border settlements.

The token, issued by Paxos and fully backed by U.S. dollar deposits and Treasuries, is positioned as a faster, regulated crypto payment option, though rewards on holdings are not yet available in all regions. At the same time, PayPal Holdings faces a securities class action alleging it misled investors over growth in its Branded Checkout segment after Q4 2025 data showed volume growth slowing to 1%.

The weak results, combined with the abrupt exit of former CEO Alex Chriss, wiped over $9 billion from PayPal’s market cap in a single session and sent the stock down more than 20% year-to-date to about $46. Analysts tracked by TipRanks now rate PayPal Holdings as a Hold with a Smart Score of 2/10 and an average 12‑month price target of $50.71, implying only modest upside while the market waits to see if PYUSD’s global rollout can offset legal and competitive headwinds.

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