365Crypto
PayPal’s stablecoin, PayPal USD (PYUSD), has reached a significant milestone, surpassing $1 billion in market capitalization, as reported by CoinMarketCap. Launched in 2023 and issued by Paxos Trust Company, PYUSD is a US dollar-pegged stablecoin backed 1:1 by US dollars. It competes with leading stablecoins like Circle’s USD Coin (USDC) and Tether (USDT).
As an Ethereum-compatible ERC-20 token, PYUSD is the only stablecoin integrated into PayPal’s payment system. It is designed to be easily adopted by developers, wallets, and Web3 applications, enhancing its utility across various platforms. Despite this progress, PYUSD still trails significantly behind its competitors, with USDT and USDC holding market capitalizations of approximately $118 billion and $35 billion, respectively.
To boost PYUSD’s adoption, PayPal has partnered with several key players. In May, it launched PYUSD on the Solana blockchain, collaborating with Crypto.com, Phantom, and Paxos to onboard users. Additionally, PayPal teamed up with MoonPay to facilitate cryptocurrency purchases using PayPal accounts, expanding its reach into the crypto betting platform Polymarket.
PayPal has also collaborated with Anchorage Digital to offer a rewards program for clients who custody PYUSD, aiming to increase its appeal. However, despite these efforts, PYUSD remains far behind its rivals in terms of market share.
With PYUSD’s growing integration and partnerships, PayPal continues to push its stablecoin into the competitive landscape of digital currencies.
