PayPal And Venmo Will Integrate Ethereum Name Service For Crypto Transfers

Venmo and PayPal users will now have the ability to transfer cryptocurrency using Ethereum Name Service (ENS) names. On September 10th, ENS Labs revealed this integration, which is projected to reach over 270 million users across the United States.

An ENS name serves as a user-friendly alias for a blockchain address. Rather than sending tokens to a lengthy, complex address composed of letters and numbers, users can register a simple name like yourname.eth for cryptocurrency transfers.

The PayPal Effect

ENS Labs stated that this new integration makes it easier to transfer between wallet addresses, minimizing errors and the risk of losing funds. Khori Whittaker, the executive director of ENS Labs, mentioned that this integration will extend ENS naming features to millions of users via Venmo, PayPal Mobile, and PayPal Web.

PayPal is actively involved in the blockchain space. As reported by CoinMarketCap, PayPal USD (PYUSD) recently surpassed a total market capitalization of $1 billion. In May, PayPal launched PYUSD on the Solana network, collaborating with Crypto.com, Phantom, and Paxos to onboard users.

Marta Cura, the director of business development at ENS Labs, explained that partnering with PayPal and Venmo helps reach newcomers to the space and those who favor the familiarity of Web2 payment systems.

Focusing On Expansion

ENS is a blockchain-based, open-source protocol designed to replace intricate addresses on the Ethereum network. Its developer, ENS Labs, has been focused on expanding the protocol. In May, the company announced its transition to a layer-2 network to reduce gas fees and improve transaction speeds.

The company is also involved in a patent dispute. In May 2024, ENS Labs challenged the validity of a patent granted to Unstoppable Domains by the US Patent and Trademark Office. ENS argues that the patent lacks originality and infringes on the open-source technology developed by ENS. ENS Labs stated that the challenge is intended to keep the web as a collaborative environment.