Venmo and PayPal users will now be able to transfer cryptocurrencies using Ethereum Name Service (ENS) names, a feature expected to reach over 270 million users in the United States.
ENS names serve as simplified nicknames for blockchain addresses, replacing the complex strings of letters and numbers traditionally used to send tokens. Instead of using complex wallet addresses like “0x74Fe1103d28fb79F4d83800003983390Dfc61234,” users can register a more straightforward name like “me.eth.”
The integration makes transfers between wallet addresses simpler while reducing errors and the risk of lost funds, according to ENS Labs. Khori Whittaker, executive director of ENS Labs, said the move brings ENS naming capabilities to a broad user base through platforms like Venmo, PayPal Mobile, and PayPal Web.
PayPal recently saw its stablecoin, PayPal USD (PYUSD), reach over $1 billion in total market capitalization, according to CoinMarketCap. Launched on the Solana network in May, PYUSD has partnered with Crypto.com, Phantom, and Paxos to onboard users.
“Collaborating with PayPal and Venmo enables us to reach new users and those familiar with traditional payment platforms,” said Marta Cura, director of business development at ENS Labs.
ENS, an open-source protocol on the Ethereum network, has been working to expand its reach. In May, ENS Labs announced a migration to a layer-2 network to reduce gas fees and speed up transactions.
ENS Labs is also involved in a patent dispute. In May 2024, the company challenged the validity of a patent awarded to Unstoppable Domains, arguing that it lacks novel contributions and infringes on ENS’s open-source technology. ENS stated that the petition aims to ensure the web remains a “collaborative space.”
ENS subdomains function as names created beneath an existing ENS parent name. They serve a similar purpose to subdomains on traditional websites, allowing users to manage multiple ENS identities. For instance, the owner of the ENS domain “bob.eth” can create various subdomains like “pay.bob.eth,” “email.bob.eth,” or “games.bob.eth,” each directing to different destinations on the web or Ethereum addresses.
Interestingly, any ENS domain owner, including uni.eth, can generate an unlimited number of subdomains as long as the ENS domain remains active. These subdomains are under the jurisdiction of the parent ENS domain owner, allowing for flexibility and customization.
