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What could affect the price of PYUSD?

PYUSD’s ability to maintain its $1 value depends on adoption, regulation, and competition.

  1. Regulatory changes – Compliance with the GENIUS Act builds trust but limits earning opportunities.
  2. Expansion across blockchains – Adding support on Arbitrum and Solana could increase usefulness.
  3. Stablecoin competition – Big players like USDT and USDC challenge PYUSD’s market share.

In-Depth Look

1. Regulatory Compliance & Yield Limits (Mixed Effects)

Overview:
The GENIUS Act, passed in July 2025, requires stablecoins backed by USD to keep a 1:1 reserve in cash or U.S. Treasuries and prohibits paying interest directly on the coins. PYUSD follows these rules by offering rewards through PayPal’s platform (3.7% APY), not through Paxos, the company that issues the coin. This approach meets regulations but means PYUSD can’t compete with some non-U.S. stablecoins like Ethena’s USDE, which saw rapid growth after the GENIUS Act.

What this means:
Clear regulations help PYUSD gain trust, but not being able to offer interest directly limits its appeal, especially in decentralized finance (DeFi). There’s also a risk if regulators question PayPal’s reward system.

2. Adoption Through Partnerships & Multi-Chain Support (Positive Outlook)

Overview:
PYUSD expanded to the Solana blockchain in May 2024 and Arbitrum in July 2025, making transactions faster and cheaper. Partnerships with Visa, Mastercard, and Bullish’s $1.15 billion IPO—partly settled in PYUSD—show growing institutional use. PayPal’s “Pay with Crypto” feature allows merchants to convert over 100 cryptocurrencies into PYUSD with a low 0.99% fee.

What this means:
Supporting multiple blockchains and working with traditional financial companies could increase PYUSD’s use for payments and settlements. For example, Bullish’s IPO used PYUSD alongside USDC and EURC, highlighting its role in large transactions (Bitget).

3. Competition in the Stablecoin Market (Challenges Ahead)

Overview:
PYUSD’s market cap is $1.35 billion, much smaller than USDT’s $167 billion and USDC’s $67.5 billion. Although PYUSD’s supply grew 35% after the GENIUS Act, Tether’s USDT added $7 billion in the same time. Other coins like Ripple’s RLUSD and EURC are also gaining ground, with RLUSD used in Bullish’s IPO.

What this means:
PYUSD faces strong competition and risks being overshadowed unless PayPal speeds up integrations and leverages its 650 million+ users and global payment tools like “PayPal World.”

Conclusion

PYUSD’s stability depends on balancing regulatory compliance with growing adoption in both crypto and traditional finance. Multi-chain expansion and institutional use cases, like IPOs and merchant payments, are promising. However, competition and limits on earning potential are challenges. Will PayPal be able to turn its huge user base into active PYUSD users before competitors take the lead? Keep an eye on PayPal’s partnerships in Q4 2025 and PYUSD’s cross-border transaction activity.


What are people saying about PYUSD?

PayPal USD (PYUSD) is making significant progress in expanding its blockchain reach and gaining acceptance among merchants. Here’s what’s trending:

  1. Arbitrum integration – Enables faster and cheaper transactions through Ethereum’s Layer 2 network
  2. Stellar expansion – Aims to support cross-border payments in over 180 countries
  3. "Pay with Crypto" rollout – Allows merchants to accept 100+ cryptocurrencies, which are then converted to PYUSD

Deep Dive

1. @CobakOfficial: PYUSD launches on Arbitrum for DeFi growth bullish

"PayPal's USD stablecoin PYUSD now supports the Arbitrum network... boosting digital payments linked to traditional currencies."
– @CobakOfficial (82K followers · 234K impressions · 2025-07-17 13:00 UTC)
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What this means: This is positive news for PYUSD because Arbitrum offers much lower transaction fees (about $0.10 compared to Ethereum’s $1.50 average). This could encourage more use of PYUSD in decentralized finance (DeFi) platforms, where having stablecoins like PYUSD is important for smooth trading and lending.

2. @StellarOrg: Stellar network approval opens global payments door bullish

"One step closer to bringing PYUSD to Stellar... enabling instant settlements in 180 countries."
– @StellarOrg (1.1M followers · 890K impressions · 2025-08-18 17:01 UTC)
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What this means: This is good news because Stellar already works with companies like MoneyGram and Visa. Adding PYUSD to Stellar’s network could make it easier and cheaper to send money internationally, especially to developing countries where remittance fees average 6.3% (according to the World Bank).

3. @CryptoMinuteAI: Merchants get access to 100+ crypto payment options neutral

"U.S. merchants can now accept over 100 cryptocurrencies, which are converted to PYUSD with a 0.99% fee – cheaper than Visa or Mastercard by about 2%."
– @CryptoMinuteAI (312K followers · 1.2M impressions · 2025-07-30 01:39 UTC)
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What this means: This is a neutral development for now. While it could help PayPal’s stablecoin become more widely used (it’s currently the 5th most popular USD stablecoin), there are still regulatory questions about supporting so many different cryptocurrencies.

Conclusion

The overall outlook for PYUSD is bullish, thanks to improvements in transaction speed and cost through Layer-2 solutions like Arbitrum, plus real-world payment partnerships. Keep an eye on the 30-day PYUSD trading volume on Arbitrum, which is currently $16.1 million (CoinMarketCap), as a sign of growing use in DeFi. The big question: Can PayPal’s 435 million active users help bring cryptocurrency into everyday spending?


What is the latest news about PYUSD?

PayPal USD (PYUSD) is gaining momentum thanks to supportive regulations, expansion across multiple blockchain networks, and increased use by merchants. Here are the latest highlights:

  1. GENIUS Act Boosts Supply (August 21, 2025) – PYUSD’s supply jumped 35% to $1.2 billion following new U.S. stablecoin regulations.
  2. Bullish IPO Settles $1.15 Billion in PYUSD (August 19, 2025) – The first U.S. IPO funded with stablecoins, showing PYUSD’s growing role with institutions.
  3. Arbitrum & Stellar Integrations (July 16, 2025) – PYUSD expanded to Arbitrum for decentralized finance (DeFi) and Stellar for global payments.

Deep Dive

1. GENIUS Act Boosts Supply (August 21, 2025)

Overview:
The GENIUS Act became U.S. law on July 18, 2025, setting clear federal rules for stablecoins. These rules require stablecoins like PYUSD to have a 1:1 reserve backing and undergo monthly audits. After PayPal adjusted its offerings to meet these rules—separating yield products from stablecoin issuance—PYUSD’s supply grew by 35%, reaching $1.2 billion in just one month.

What this means:
This is good news for PYUSD because clear regulations reduce risks and encourage more institutions to use it. However, other stablecoins that offer interest or yield, like Ethena’s USDE (which grew 107%), may push PayPal to innovate beyond just meeting regulations. (The Defiant)

2. Bullish IPO Settles $1.15 Billion in PYUSD (August 19, 2025)

Overview:
Bullish’s $1.15 billion initial public offering (IPO) on the New York Stock Exchange was the first U.S. IPO settled using blockchain-based stablecoins. PYUSD was part of the funds used, with most transactions happening on the Solana blockchain. In 2025, PYUSD transfers on Solana surpassed $300 billion.

What this means:
This development shows PYUSD is gaining acceptance in traditional financial markets. While Solana’s role highlights PYUSD’s strategy to operate on multiple blockchains, it also points to Ethereum’s shrinking share in large transactions. (Bullish)

3. Arbitrum & Stellar Integrations (July 16, 2025)

Overview:
PYUSD has expanded to the Arbitrum network to enable faster and cheaper DeFi transactions, and to Stellar to support low-cost international payments. Arbitrum helps reduce Ethereum’s high transaction fees, while Stellar focuses on cross-border payments in over 180 countries through partners like MoneyGram.

What this means:
These integrations increase PYUSD’s usefulness. Arbitrum could attract more DeFi users, and Stellar’s reach in emerging markets aligns with PayPal’s goal to handle $6.3 billion in monthly stablecoin volume. However, success depends on connecting with local payment systems. (CoinMarketCap)

Conclusion

PYUSD is establishing itself as a stable, regulation-friendly bridge between traditional finance and crypto. Supported by the GENIUS Act, institutional use cases, and multi-chain capabilities, PYUSD is positioned for growth. While it still trails leaders like USDC and USDT, PayPal’s partnerships and focus on real-world payments could help PYUSD capture a larger market share. The question remains: will Stellar’s presence in emerging markets unlock PYUSD’s next phase of growth?


What is expected in the development of PYUSD?

PayPal USD’s roadmap is focused on expanding its blockchain reach and improving how users can benefit from it.

  1. Stellar Integration (2025) – PYUSD will launch on the Stellar network to enable faster and cheaper global payments.
  2. Confidential Transfers (TBD) – Introducing private transactions on Solana to protect payment details.
  3. Rewards Program Expansion (Ongoing) – Offering interest-like rewards to encourage holding PYUSD.

Deep Dive

1. Stellar Integration (2025)

Overview: In August 2025, Paxos got approval from the New York State Department of Financial Services (NYDFS) to issue PayPal USD (PYUSD) on the Stellar blockchain. This move aims to speed up international payments and support small and medium-sized businesses by using Stellar’s affordable and efficient payment system. PYUSD is already available on Ethereum, Solana, and Arbitrum.

What this means:

2. Confidential Transfers (TBD)

Overview: Solana’s plans include confidential transfers, which let merchants keep transaction amounts private while still following legal rules. This feature is planned but not yet active.

What this means:

3. Rewards Program Expansion (Ongoing)

Overview: Since July 2025, PayPal has been offering a 4% annual yield on PYUSD balances of 1.0 PYUSD or more, with rewards paid monthly. To qualify, users need a U.S.-based PayPal Balance account.

What this means:

Conclusion

PayPal USD is focusing on making PYUSD work across multiple blockchains like Stellar and Solana while offering incentives to users. The upcoming Stellar integration is a key step, but it’s important to watch for updates on privacy features and any regulatory changes that could affect rewards. How will PYUSD’s multi-chain approach shape its competition with other stablecoins like USDC and USDT?


What updates are there in the PYUSD code base?

PYUSD’s technology has expanded to include Stellar and Arbitrum networks, improving its ability to work across different blockchains and boosting security.

  1. Stellar Integration (August 2025) – PYUSD got regulatory approval to be issued on the Stellar network.
  2. Arbitrum Support (July 2025) – PYUSD launched on Ethereum’s Layer-2 solution, Arbitrum, for faster and cheaper transactions.
  3. Delegate Transfers (v2 Update) – Introduced gasless batch transfers using new Ethereum standards (EIP-3009/2612).

Deep Dive

1. Stellar Integration (August 2025)

Overview: Paxos received approval from New York’s financial regulator (NYDFS) to issue PYUSD on the Stellar blockchain. This move aims to speed up cross-border payments and support small-scale financing.
Technically, this means PYUSD transactions can now use Stellar’s low-cost network, allowing for more transactions at a lower price. The update also includes changes to smart contracts so PYUSD can work smoothly across multiple blockchains while following Stellar’s rules.
What this means: This is a positive development for PYUSD because it opens up new opportunities in growing markets and lowers costs for sending money internationally. (Source)

2. Arbitrum Support (July 2025)

Overview: PYUSD was launched on Arbitrum, a Layer-2 scaling solution for Ethereum. This reduces transaction fees by about 90% compared to using Ethereum’s main network.
The update involved deploying a new contract on Arbitrum and ensuring it works with Arbitrum’s Optimistic Rollup technology. Limits were set to $100,000 per week for purchases and $25,000 per week for transfers to manage risk.
What this means: While this doesn’t directly increase PYUSD’s value, it makes the stablecoin more accessible to decentralized finance (DeFi) users and supports PayPal’s goal to scale its services in 2025. (Source)

3. Delegate Transfers (v2 Update)

Overview: The latest version of PYUSD’s code added support for Ethereum standards EIP-3009 and EIP-2612. These allow users to send multiple transactions at once and make transfers without paying gas fees upfront by using signed permissions.
New features include a transferFromBatch function for handling bulk transfers and a permit function for approvals done off the blockchain. Security audits by Zellic and Trail of Bits confirmed these updates are safe.
What this means: This is good news for PYUSD because it makes the stablecoin easier to use for businesses, such as payroll or merchant payments, and reduces reliance on the Ethereum network.

Conclusion

PYUSD’s recent updates focus on making the stablecoin more flexible across different blockchains, lowering costs, and adding features suited for businesses. With Stellar and Arbitrum now live and gasless transactions available, it will be interesting to see how PYUSD’s Total Value Locked (TVL) on Layer-2 networks grows in the last quarter of 2025.