# PayPal Betting Big on Stablecoins After Disclosing Q2 Results > Source: > Published: 2026-08-03 01:50:00+00:00 PayPal has reported $486.4 billion in total payment volume for the second quarter on July 28, up 10% year over year. It also confirmed a reorganization that hands crypto its own division inside the company. The unit, Payment Services & Crypto, sits alongside Checkout Solutions & PayPal and Consumer Financial Services & Venmo. In the same presentation, PayPal listed stablecoins as one of three areas it is expanding into under an “innovating with discipline” heading, next to agentic commerce and identity and biometrics. ## Crypto Holdings Cost $81 Million Further, revenue [came](https://s205.q4cdn.com/875401827/files/doc_financials/2026/q2/PYPL-2Q-26-Earnings-Presentation.pdf) in at $8.68 billion, up 5%. Non-GAAP earnings were $1.38 per share against analyst estimates near $1.28. Transaction margin dollars rose 1% to $3.9 billion, and adjusted free cash flow reached $1.83 billion. PayPal raised full-year transaction margin guidance to about $15.6 billion and lifted the low end of its EPS range to roughly $5.38. Net losses on strategic investments and crypto assets held for investment came to $81 million in the quarter, added back in the reconciliation to non-GAAP net income. The same line ran $74 million in the first quarter. PayPal’s full-year 2025 GAAP earnings carried a positive impact of about $0.14 per share from that portfolio. $PYUSD supply sat near $2.8 billion in mid-July, down from more than $4 billion in March. The token went live natively on Polygon on July 9 through issuer Paxos, and PayPal has said the stablecoin reaches 70 markets. YouTube began paying US-based creators in $PYUSD in December. CryptoPotato has also reported on CoinGecko research showing $PYUSD and Societe Generale’s EURCV taking little share while USDT and USDC hold 93.5% of fiat-backed stablecoin supply. ## CEO Restructures After Rejecting Stripe CEO Enrique Lores, who took the role on March 1 after Alex Chriss departed, is targeting at least $1.5 billion in gross run-rate savings over the next two to three years, with about $400 million reached by year-end. ### You may also like: - Ripple Doubles Down on RLUSD With Mint Launch and Notabene Investment - $EURC’s Record Network Growth Could Signal a Major Shift in Europe’s Crypto Economy - PayPal’s Stablecoin Lands on Polygon With Built-In Compliance and Fiat Access The plan runs to 2029 across three drivers: a simplified structure, operational and portfolio optimization, and accelerated AI adoption, which PayPal expects to deliver around 40% of the savings.