PayPal USD (PYUSD), the U.S. dollar-pegged stablecoin issued by Paxos Trust Company and launched in August 2023, has experienced significant growth in 2025, driven by PayPal’s ecosystem integrations, multi-chain expansions, and partnerships that emphasize regulatory compliance and real-world utility.
As of September 10, 2025, PYUSD’s market capitalization stands at approximately $1.17-1.18 billion, with a circulating supply of around 1.17-1.2 billion tokens, representing substantial growth from ~$783 million in early 2025.
Key drivers include launches on Arbitrum and Stellar blockchains, enhanced integrations with Coinbase and Mastercard, and the rollout of PayPal’s bill-pay product for 20+ million merchants.
This report provides a comprehensive analysis of recent data, news, and insights, highlighting PYUSD’s evolution as a payment-centric stablecoin in a market dominated by USDT and USDC.
Current Market Data
PYUSD Market Analysis
1. Market Capitalization: PYUSD reached $1.17-1.18 billion market cap by September 2025, up from ~$783 million in early 2025, representing approximately $400 million growth.
The stablecoin ranks #74 among all cryptocurrencies and #10 among stablecoins.
2. Year-to-Date Growth: Monthly transaction volumes surged over 400% year-over-year, rising to $3.95 billion by mid-2025.
Total transaction volumes exceeded $500 million monthly on Ethereum alone.
3. Transfer Volumes: 24-hour trading volumes range between $84-105 million, with peaks during major integration announcements.
PYUSD contributes to the broader stablecoin market’s $1.39 trillion in H1 2025 flows.
4. Balances and Liquidity: 90% of supply held by institutions and whales indicates strong enterprise traction.
PayPal offers 3.7-4% APY yields to incentivize holdings and compete with traditional savings products.
PYUSD Platform Distribution
Top Blockchain Networks for PYUSD
1. Ethereum: Primary deployment platform hosting majority of supply, supports DeFi integrations and institutional settlements with robust smart contract infrastructure.
2. Solana: Launched early 2025 enabling zero-fee transfers via Solana Pay, integrated for Hyperwallet payouts, cutting cross-border costs by 70%.
3. Arbitrum: Layer-2 rollout on July 17, 2025 reduces transaction fees to <1 cent, boosts DeFi accessibility with 94% YTD TVL growth in Ethereum RWAs.
4. Stellar: Announced June 2025, pending NYDFS approval, targets low-cost payments and remittances while unlocking developer financing use cases.
5. Multi-Chain Strategy: Total deployment across 6 networks enhances interoperability and adoption potential across different use cases and geographic regions.
Recent News and Developments
Arbitrum Launch (July 17, 2025)
PayPal deployed PYUSD on Arbitrum Layer-2 network, reducing transaction fees to under 1 cent and significantly improving DeFi accessibility.
The integration coincides with 94% year-to-date growth in total value locked for Ethereum-based real-world assets.
Bill-Pay Product Launch (2025)
PayPal unveiled plans to allow its 20+ million small-to-medium merchants to pay vendors using PYUSD through a new bill-pay feature.
This addresses critical small business needs for efficient cross-border payments without currency conversion friction.
Regulatory and Market Milestones
GENIUS Act compliance with 1:1 reserve mandate strengthens institutional trust.
PYUSD used in $1.15 billion Bullish IPO settlement on Solana (August 2025).
CertiK ranks PYUSD among top stablecoins for security.
Monthly Paxos attestations confirm full backing with no incidents in 2025.
Ecosystem Integrations
Mastercard adds PYUSD to network alongside USDC/USDG (June 2025), enabling settlements via Mastercard Move.
Coinbase partnership enables zero-fee PYUSD-USD conversions (April 2025).
Kamino Finance offers $700K monthly incentives for PYUSD on Solana.
Hyperwallet integration for global contractor payouts launches H1 2025.
Other News
Pay with Crypto expansion allows U.S. merchants to accept 100+ cryptos converting to PYUSD, reducing fees by 60% vs cards.
Yield program launches summer 2025 offering 3.7-4% APY on holdings.
UAE adopts PYUSD for e-commerce and real estate transactions.
EU MiCA framework approval enables European expansion.
Insights and Analysis
Advantages of PYUSD in Digital Payments
1. Regulatory Compliance Edge: Full adherence to U.S. regulations including GENIUS Act’s 1:1 reserve mandate provides institutional confidence.
Monthly transparency reports from Paxos and NYDFS oversight surpass competitors like USDT in trust and accountability.
2. PayPal Ecosystem Leverage: Integration with 400+ million PayPal users and 20+ million merchants eliminates adoption barriers.
Zero-fee transfers to PayPal/Venmo balances and low-cost on-chain transactions drive retail accessibility.
3. Multi-Chain Efficiency: Strategic deployment across 6 blockchains optimizes for different use cases, Ethereum for liquidity, Solana for speed, Arbitrum for low fees, Stellar for global reach.
70% cost reduction on cross-border payments via Solana Pay demonstrates real utility.
4. Institutional Focus: 90% whale concentration indicates strong enterprise adoption with institutional-grade infrastructure.
3.7-4% APY yields compete directly with traditional money market funds while maintaining instant liquidity and blockchain benefits.
Future Outlook + Predictions
Growth Potential
PYUSD positioned to triple adoption by 2026 as bill-pay and crypto settlement features roll out to millions of merchants.
Multi-chain growth and competitive yields could push market cap to $3-5 billion by 2026, capturing meaningful share of projected $2 trillion stablecoin market by 2028.
Predictions
Monthly volumes expected to triple by end-2025 with full merchant integration.
Cross-border payment volume via Hyperwallet and Stellar could exceed $100 billion annually.
Stablecoins projected to capture 8.9% of total crypto market with PYUSD targeting fintech niche.
Risks and Opportunities
Competition from USDT (66% market share) and USDC (28%) requires aggressive growth execution.
Interest rate cuts could erode yield competitiveness versus traditional products.
Pending regulatory approvals may slow international expansion but compliance focus provides long-term resilience.
Conclusion
PYUSD has grown from an experimental stablecoin to a $1.18 billion payment solution integrated across PayPal’s ecosystem.
With 400%+ volume growth, multi-chain deployment, and institutional backing, it’s positioned to capture significant market share despite trailing USDT/USDC.
Success hinges on converting PayPal’s 20+ million merchants and leveraging regulatory compliance advantages to reach $3-5 billion market cap by 2026.
Stay tuned with the leading stablecoin news for more information.
Related Reports:
FAQs:
1. What is PYUSD and who issues it?
PYUSD (PayPal USD) is a U.S. dollar-pegged stablecoin issued by Paxos Trust Company on behalf of PayPal.
Launched in August 2023, it maintains a 1:1 backing with U.S. dollar deposits, short-term Treasuries, and cash equivalents, with monthly transparency reports ensuring full reserve backing.
2. How has PYUSD grown in 2025?
PYUSD’s market capitalization grew from ~$783 million in early 2025 to $1.17-1.18 billion by September 2025.
Monthly transaction volumes surged over 400% year-over-year, reaching $3.95 billion by mid-2025, with Ethereum alone processing over $500 million monthly.
3. Which blockchains support PYUSD?
PYUSD operates across 6 blockchain networks: Ethereum (primary platform), Solana (zero-fee transfers), Arbitrum (sub-1-cent transaction fees), Stellar (pending approval for global payments), and additional networks supporting cross-chain interoperability via protocols like LayerZero.
4. What are the main use cases for PYUSD?
Primary use cases include merchant vendor payments via PayPal’s bill-pay product, cross-border remittances with 70% cost savings, Hyperwallet contractor payouts, DeFi integration with 3.7-4% APY yields, and cryptocurrency-to-fiat conversions for 20+ million PayPal merchants.
5. How does PYUSD compare to other stablecoins?
PYUSD holds less than 1% market share compared to USDT (66%) and USDC (28%).
However, it offers superior regulatory compliance, direct integration with PayPal’s 400+ million users, and institutional-grade infrastructure with 90% of supply held by whales and institutions.
References:
Mastercard announces stablecoin integration including PYUSD: https://www.mastercard.com/us/en/news-and-trends/stories/2025/mastercard-stablecoin-utility-and-scale.htmlChainalysis 2025 Global Crypto Adoption Report with stablecoin growth data: https://www.chainalysis.com/blog/2025-global-crypto-adoption-index/PayPal announces PYUSD expansion to Stellar network: https://newsroom.paypal-corp.com/2025-06-11-PayPal-USD-PYUSD-Plans-to-Use-Stellar-for-New-Use-CasesBloomberg report on PayPal’s PYUSD merchant adoption plans: https://www.bloomberg.com/news/articles/2025-02-25/paypal-plans-to-ramp-up-adoption-of-its-stablecoin-through-2025PYUSD’s Stellar Integration and Institutional Adoption analysis: https://www.ainvest.com/news/pyusd-stellar-integration-institutional-adoption-era-paypal-stablecoin-2508/CertiK Skynet Report ranking PYUSD among top stablecoins: https://www.globenewswire.com/de/news-release/2025/07/23/3120100/0/en/CertiK-Skynet-Report-Ranks-Leading-Stablecoins-USDT-USDC-PYUSD-and-RLUSD-Among-the-Top.htmlDaily Hodl report on PayPal’s 20 million merchant expansion: https://dailyhodl.com/2025/02/27/paypal-planning-big-expansion-of-pyusd-adoption-via-the-payment-giants-20000000-merchants-in-2025-report/CoinCentral analysis of PayPal’s merchant adoption strategy: https://coincentral.com/paypal-targets-20-million-merchants-for-pyusd-stablecoin-adoption-by-2025/Stablecoin market analysis comparing USDT, USDC, and PYUSD: https://www.xaigate.com/stablecoin-race-in-payments-usdt-usdc-pyusd-2025/PYUSD market data from CoinMarketCap: https://coinmarketcap.com/currencies/paypal-usd/PYUSD price and market cap data from CoinGecko: https://www.coingecko.com/en/coins/paypal-usdBitget PYUSD market analysis and live data: https://www.bitget.com/price/paypal-usdBlockonomi report on PYUSD platform integration: https://blockonomi.com/paypal-targets-pyusd-integration-across-entire-platform-in-2025CoinGape analysis of PYUSD vs USDT competition: https://coingape.com/paypal-pyusd-stablecoin-plans-to-take-on-tether-usdt-dominance-in-2025/Stellar official announcement of PayPal partnership: https://stellar.org/press/paypal-pyusd99Bitcoins report on H1 2025 stablecoin market growth: https://99bitcoins.com/news/altcoins/stablecoin-market-explodes-in-h1-2025-supply-jumps-to-252-billion/The Street analysis of USDC and USDT market dominance: https://www.thestreet.com/crypto/markets/usdc-and-usdt-still-dominance-stablecoins-reportMedium analysis of 2025 stablecoin market overview: https://medium.com/@monolith.vc/stablecoins-in-2025-full-overview-of-the-230b-market-bab96c680c44KPMG regulatory challenges report for 2025: https://kpmg.com/us/en/articles/2025/ten-key-regulatory-challenges-of-2025-mid-year.htmlAccounting Insights analysis on PYUSD investment potential: https://accountinginsights.org/is-paypal-usd-a-good-investment-for-2025-and-beyond/