PayPal's Stablecoin PYUSD Surpasses $1 Billion in Market Capitalization

PayPal’s US dollar-pegged stablecoin, PayPal USD (PYUSD), has achieved a significant milestone, surpassing $1 billion in total market capitalization

PayPal’s stablecoin, pegged to the US dollar and named PayPal USD (PYUSD), has achieved a remarkable milestone by surpassing $1 billion in total market capitalization, according to CoinMarketCap.

Launched in 2023, PYUSD is fully backed 1:1 by US dollars and is issued by Paxos Trust Company, a crypto custodian that is regulated by the New York State Department of Financial Services (NYDFS).

Dan Schulman, President and CEO of PayPal, highlighted the significance of digital currencies, stating, “The shift toward digital currencies and away from cash and legacy payment systems requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar.”

Operating as an ERC-20 token on Ethereum, PYUSD is fully compatible with the network. This stablecoin is designed to integrate seamlessly with a wide range of external developers, wallets, and Web3 applications, offering a high level of accessibility.

To further boost its reach, PayPal has forged several key partnerships. In May, the payment giant introduced PYUSD on the Solana blockchain in collaboration with Crypto.com, Phantom, and Paxos.

This move aims to attract more users to the blockchain network. Additionally, PayPal joined forces with Web3 infrastructure provider MoonPay to enable cryptocurrency purchases directly through PayPal accounts, further expanding its presence in the digital asset market.

Despite its growing presence, PYUSD still trails behind established dollar-pegged stablecoins like Tether and USD Coin (USDC). Tether leads with a market cap of nearly $118 billion, while USDC follows with about $35 billion.

As PYUSD continues to gain traction, it embodies a growing trend of digital assets converging with traditional financial systems, offering a stable and innovative solution in the evolving crypto landscape.

Also Read: PayPal and Anchorage Launch Stablecoin Rewards Program for Investors

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