Stripe Eyes PayPal as Valuation Hits $159B

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Good Morning.

Stripe exploring a PayPal acquisition right after locking in a $159B valuation is the biggest story this week. This points to real consolidation in global payments, where legacy fintech and crypto infrastructure are starting to overlap. If it happens, Stripe would stack scale, stablecoins, custody, and blockchain rails into one system, shifting the balance across fintech and crypto.

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In Today's Email:

• What Matters: Stripe Eyes PayPal as Valuation Hits $159B 🤑 

• Case Study: Better Taps $500M Sky Stablecoin Credit in Framework Deal 🔎 

• Governance & Features: Oobit’s Global Bank Transfers - Crypto Integration 🌐 

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WHAT MATTERS

Stripe Eyes PayPal as Valuation Hits $159B

State of play: Stripe is reportedly exploring a potential acquisition of PayPal. The news follows Stripe’s confirmation of a $159B valuation via a tender offer backed by Thrive Capital, Coatue, and a16z, with the company also repurchasing shares.

• Stripe processed $1.9T in payment volume in 2025, up 34% year over year.

• Net revenue reached about $5.1B in 2024, up 28%, and the company turned profitable. Its revenue suite is approaching a $1B annual run rate.

• Stripe is leaning deeper into crypto and stablecoin infrastructure. It acquired Bridge for $1.1B, later adding Privy and the team behind Valora.

• Bridge has received conditional approval from the Office of the Comptroller of the Currency to become a federally chartered national bank.

• Stripe has also co developed Tempo, a payments focused Layer 1 blockchain now live on public testnet.

Why it matters: This would not just be an acquisition. It would represent consolidation of two major internet payment rails at a time when stablecoins and regulated digital money are moving into the mainstream.

Our take: Private capital is clearly re rating core financial infrastructure. If Stripe absorbs PayPal or key assets, it tightens its grip on both legacy and next generation money movement. Payments plus stablecoin issuance plus custody is a powerful stack.

For builders and investors: Plug into the rails that are already scaling. Payments, stablecoins, and compliance ready infrastructure are where distribution lives.

• Watch companies that control flow, custody, and issuance layers. That is where long term value compounds.

CASE STUDY

Better Taps $500M Sky Stablecoin Credit in Framework Deal

Better Home and Finance has partnered with Framework Ventures to integrate into the Sky stablecoin ecosystem, unlocking up to $500M in credit. Framework is also taking a $45M equity stake in Better, representing about 10% of the company at current prices.

• Better will act as a designated “Star” in Sky’s network, deploying tokenized capital that generates yield for the stablecoin ecosystem.

• The integration will be facilitated through Obex, a Sky focused incubator backed by a $2.5B commitment from Sky.

• Better plans to use this as an alternative warehouse funding source, aiming to diversify capital without increasing balance sheet risk.

• The company expects tokenized funding to cut costs by over 100 basis points annually and potentially bring mortgage rates below 5%.

• The firm currently originates about $500M in loans per month and aims to scale to over $1B monthly by 2026.

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INSIGHTS

Bitcoin ETF Holders Sold 25,000 BTC in Q4

State of play: Institutional holders of spot Bitcoin ETFs sold roughly 25,000 BTC worth of shares in Q4 2025, according to Bloomberg ETF analyst James Seyffart, citing 13F filings. Specifically, 25,098 BTC equivalent was offloaded during the quarter.

• The selling coincided with Bitcoin’s sharp drop from over $120,000 to below $85,000 in Q4.

• The broader decline has continued, with BTC now trading near $64,000 and market sentiment sliding into extreme fear territory.

• Brevan Howard led the reductions, cutting more than 17,000 BTC worth of ETF exposure.

• Investment advisors and hedge funds remained the largest holder categories overall.

• Outflows have continued into 2026, with five straight weeks of net redemptions, including about $316M in the week ending Feb. 20.

FEATURES & GOVERNANCE UPDATE

Oobit’s Global Bank Transfers via Crypto Integration

Tether backed payments app Oobit has launched wallet to bank transfers worldwide through a new integration with Distributed Technologies Research (DTR), a routing infrastructure provider that connects crypto rails to traditional banking networks.

• The feature allows users to send crypto and have funds settle directly into bank accounts using local payment systems such as SEPA, ACH, and SPEI.

• Supported fiat currencies initially include USD, EUR, MXN, and PHP, alongside a wide range of crypto including BTC, ETH, USDT, USDC, SOL, XRP, and others.

• Transactions are designed to show real time conversion amounts with no hidden fees, settling in seconds while bypassing the traditional correspondent banking system.

• DTR is being acquired by Bakkt, whose CEO also founded DTR. Oobit previously partnered with Bakkt to expand across all 50 US states.

• Oobit raised a $25M Series A led by Tether, and VCI Global later announced a $100M investment in OOB tokens tied to treasury management plans.

Other notable feature updates:

• Optimism passes the Bedrock Protocol Upgrade.

• Hyperliquid Policy Center launches in Washington.

• Arbitrum proposes upgrading to ArbOS Version 40 Callisto.

• Uniswap proposed a Unichain Co-Incentives Growth Management Plan.

QUICK BITES

• Oobit unlocks global bank transfers.

• Coinbase partners with Yahoo Finance.

• Sen. Blumenthal investigates Binance.

• Stripe circles possible PayPal acquisition.

• Meta eyes stablecoin integration this year.

• Stripe valuation jumps to $159B on back of tender offer.

• Better partners with Framework on $500M Sky stablecoin credit plan.

• Holders sold over 25,000 BTC worth of bitcoin ETFs shares last quarter.

• Kraken rolls out round-the-clock perps for gold, major indexes and stocks.

NOTEWORTHY READS & MEME

• Ray Dalio’s read on Investing In Light Of The Big Cycle.

• Delphi’s read on Hyperliquid Is Becoming the Exchange for Everything.

• A1 Research’s read on Perp DEX Wars: The $8T Institutional Endgame.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.