PayPal’s stablecoin, PayPal USD (PYUSD), has crossed a major milestone by reaching a market capitalization of over $1 billion, according to data from CoinMarketCap. Launched in 2023, PYUSD is fully backed 1:1 by US dollars and issued by the US-regulated Paxos Trust Company, marking PayPal’s deepening involvement in the cryptocurrency space.
Dan Schulman, PayPal’s President and CEO, emphasized the growing importance of digital currencies, stating, “The shift toward digital currencies demands a stable asset that is both digitally native and strongly tied to fiat currencies like the US dollar.”
PYUSD is designed as an ERC-20 token on the Ethereum network, which ensures full compatibility with Ethereum-based ecosystems. Exclusively supported on PayPal’s payment platform, the stablecoin is also built for easy integration with external developers, wallets, and Web3 applications.
In a bid to increase adoption, PayPal has partnered with several key players. In May, the company expanded PYUSD’s presence by launching it on the Solana blockchain, in collaboration with Crypto.com, Phantom, and Paxos. This move is intended to draw more users to the blockchain. Additionally, PayPal has teamed up with Web3 infrastructure provider MoonPay, enabling users to purchase cryptocurrencies directly through their PayPal accounts.
Despite PYUSD’s success, it still lags behind industry giants Tether (USDT) and USD Coin (USDC). Tether remains the dominant player in the stablecoin market with a market cap approaching $118 billion, while USDC follows with about $35 billion.
As PayPal’s PYUSD gains traction, it signifies the increasing integration of digital assets into traditional financial systems, offering a stable and forward-looking solution in the ever-evolving crypto landscape.
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