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PayPal’s US dollar-pegged stablecoin, PayPal USD, has surpassed $1 billion in total market capitalization, according to data from CoinMarketCap.
Launched in 2023, PayPal USD (<a data-ct-non-breakable="null" href="https://cointelegraph.com/paypal-pyusd-price-index" rel="" target="_self" text="null">PYUSD</a>) is backed 1:1 by US dollars and is issued by Paxos Trust Company, a US-regulated crypto custodian. It competes with other regulated, dollar-backed stablecoins such as Circle Internet Financial’s USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="" target="_self" text="null">USDC</a>).
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” <a data-ct-non-breakable="null" href="https://newsroom.paypal-corp.com/2023-08-07-PayPal-Launches-U-S-Dollar-Stablecoin" rel="nofollow noopener" target="_blank" text="null">said</a> Dan Schulman, PayPal’s president and CEO, in a 2023 statement.
An Ethereum-compatible ERC-20 token, PYUSD is the only stablecoin supported on PayPal’s payment rails. It is designed to be “available to an already large and growing community of external developers, wallets and Web3 applications” and easily onboarded by cryptocurrency exchanges, according to PayPal.&nbsp;
<figure>
 <img alt="PayPal’s PYUSD stablecoin hits $1B market cap" name="" src="https://s3.cointelegraph.com/uploads/2024-08/0191903a-006b-7470-8aab-41d76f39f3d1">
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 PYUSD still lags behind leading stablecoins USDT and USDC. Source: CoinMarketCap
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/anchorage-adds-paypal-stablecoin-yield-custody-platform" rel="null" target="null" text="null">Anchorage Digital adds PayPal stablecoin yield to custody platform</a>
PayPal has been taking steps to expand PYUSD’s accessibility, including <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/anchorage-adds-paypal-stablecoin-yield-custody-platform" rel="null" target="null" text="null">working with Anchorage Digital to launch a rewards program</a> for clients who custody PayPal USD stablecoins with the crypto custodian.&nbsp;
In May, PayPal launched PYUSD on Solana, <a data-ct-non-breakable="null" href="https://newsroom.paypal-corp.com/2024-05-29-PayPal-USD-Stablecoin-Now-Available-on-Solana-Blockchain,-Providing-Faster,-Cheaper-Transactions-for-Consumers" rel="nofollow noopener" target="_blank" text="null">partnering</a> with Crypto.com, Phantom and Paxos to on-ramp users onto the blockchain network.&nbsp;
It also <a data-ct-non-breakable="null" href="https://newsroom.paypal-corp.com/2024-05-02-MoonPay-Now-Lets-Users-Buy-Sell-Crypto-funded-by-PayPal" rel="nofollow noopener" target="_blank" text="null">partnered</a> with Web3 infrastructure provider MoonPay to buy cryptocurrency using a PayPal account. That partnership extended to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/polymarket-clinches-moonpay-payments-partnership-amid-u-s-election-betting-frenzy" rel="null" target="null" text="null">on-ramping users to crypto betting platform Polymarket</a> in July.
Coinbase — which also has an institutional custody arm — incentivizes users to hold stablecoins on its platform as well. It currently offers approximately 5.2% annual percentage yield on USDC. Coinbase owns an equity stake in Circle.&nbsp;
Despite its recent successes, PYUSD still greatly lags behind dollar-pegged stablecoins Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="" target="_self" text="null">USDT</a>) and USDC. According to data from CoinMarketCap, the two leading stablecoins <a data-ct-non-breakable="null" href="https://coinmarketcap.com/view/stablecoin/" rel="nofollow noopener" target="_blank" text="null">command</a> market capitalizations of nearly $118 billion and $35 billion, respectively.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/musk-empire-exchange-listing-sandbox-web3-gamer/" rel="null" target="null" text="null">When Musk Empire listing? Find love in The Sandbox and more: Web3 Gamer</a>

PayPal’s PYUSD stablecoin hits $1B market cap

Cointelegraph

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