PayPal’s stablecoin, PayPal USD (PYUSD), has achieved a significant milestone, surpassing a $1 billion market cap, according to CoinMarketCap. Launched in 2023, PYUSD is fully backed 1:1 by US dollars and is issued by Paxos Trust Company, a US-regulated crypto custodian.
PYUSD and Its Features
PYUSD operates as an ERC-20 token on Ethereum, making it fully compatible with the network. This stablecoin is exclusively supported on PayPal’s payment platform and is designed to integrate seamlessly with a wide range of external developers, wallets, and Web3 applications.
PayPal’s Partnerships for Promoting PYUSD
To boost PYUSD's accessibility, PayPal has partnered with various entities. In May, it launched 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 reach.
Competition in the Stablecoin 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 represents a growing trend of digital assets blending with traditional financial systems, offering a stable and innovative solution in the evolving crypto landscape.
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