What is expected in the development of PYUSD?
PayPal USD’s (PYUSD) upcoming plans focus on expanding blockchain use and improving payment options:
- Stellar Integration (Q4 2025) – Launching PYUSD on the Stellar blockchain to speed up international payments.
- P2P Payment Service (September 2025) – Allowing users to send Bitcoin, Ethereum, and PYUSD directly through PayPal and Venmo.
- Global SME Adoption (2025) – Bringing PYUSD to 20 million small and medium-sized businesses worldwide.
Deep Dive
1. Stellar Integration (Q4 2025)
Overview: PayPal intends to use the Stellar blockchain (Stellar) for PYUSD, once regulatory approval is secured. Stellar is known for its very low transaction costs (around $0.001 per transaction) and is designed to make international payments faster and cheaper. This fits well with PayPal’s goal to make sending money across borders easier and more affordable.
What this means: This move is positive for PYUSD because it could open up new opportunities in developing markets and make it easier to use PYUSD for everyday transactions. However, there are risks like possible delays in getting regulatory approval and competition from other stablecoins already on Stellar.
2. P2P Payment Service (September 2025)
Overview: PayPal is adding a new feature that lets users send Bitcoin, Ethereum, and PYUSD directly to each other within PayPal and Venmo wallets. This service will first be available in the U.S., with plans to expand to the U.K. and Italy.
What this means: This is a positive step because it makes using cryptocurrencies simpler for everyday users. However, some challenges remain, such as handling tax reporting and making sure users understand how to use the service. The success of this feature depends on smooth conversion between cryptocurrencies and regular money, plus good user support.
3. Global SME Adoption (2025)
Overview: PayPal plans to integrate PYUSD into 20 million small and medium-sized businesses (SMEs) worldwide. This includes enabling payments through Hyperwallet, which supports cross-border vendors and freelancers.
What this means: This is good news for PYUSD’s usefulness and growth. If many businesses start using PYUSD for payroll and supplier payments, demand for the stablecoin could increase significantly. However, challenges include convincing merchants to adopt PYUSD and competing with other popular stablecoins like USDC.
Conclusion
PYUSD’s roadmap highlights connecting different blockchain networks (like Stellar and Arbitrum) and focusing on practical uses (peer-to-peer payments and business adoption). This positions PYUSD as a link between traditional finance and the emerging world of blockchain technology. The big question is whether regulatory support and merchant interest will help PYUSD grow faster than its competitors.
What updates are there in the PYUSD code base?
PayPal USD (PYUSD) expands to Arbitrum, launches a rewards program, and aims to boost cross-chain use.
- Arbitrum Integration (July 16, 2025) – PYUSD is now available on Ethereum’s Layer-2 network, Arbitrum, allowing faster and cheaper transactions.
- Rewards Program Launch (July 16, 2025) – PYUSD holders can earn daily rewards through PayPal’s Cryptocurrencies Hub.
Deep Dive
1. Arbitrum Integration (July 16, 2025)
Overview:
PYUSD has expanded to Arbitrum, a popular Layer-2 network built on Ethereum. This means transactions with PYUSD can now happen almost instantly and cost much less compared to using Ethereum’s main network.
This is PYUSD’s first move onto a Layer-2 solution, adding to its existing support on Ethereum and Solana. On Arbitrum, transaction fees drop to about 10 cents, compared to roughly $1.50 on Ethereum, and payments settle within seconds. PayPal has set limits for PYUSD on Arbitrum: users can buy up to $100,000 per week and send up to $25,000.
Why it matters:
This is a positive step for PYUSD because it opens the door to more use cases within Ethereum’s decentralized finance (DeFi) ecosystem, including popular platforms like Uniswap and Aave. It also appeals to users who want fast, low-cost payments. With Arbitrum managing $2.8 billion in total value locked (TVL) as of September 2025, PYUSD could see more use in trading, lending, and international payments. (Source)
2. Rewards Program Launch (July 16, 2025)
Overview:
PayPal has introduced a rewards program for PYUSD holders. If you hold at least 1 PYUSD, you can earn daily rewards that accumulate and are paid out monthly.
The exact annual interest rate hasn’t been disclosed. The program is designed for both individual and business users. There’s no need to lock up your PYUSD, but your PayPal account must meet compliance requirements.
Why it matters:
This is a mixed development for PYUSD. While the rewards encourage people to hold onto their PYUSD, the lack of transparency about the interest rate and reliance on Paxos’ reserves might make some users cautious. Still, it could attract those looking for a safer way to earn yield in the often unpredictable crypto market. (Source)
Conclusion
The recent updates to PYUSD’s platform show a clear focus on improving transaction speed and cost through Layer-2 technology, while also trying to keep users engaged with rewards. Expanding to Arbitrum fits well with Ethereum’s plan to scale, and the rewards program resembles traditional finance savings accounts. The big question is whether PYUSD’s multi-chain approach will help it compete more effectively with established stablecoins like USDT and USDC in the DeFi space.
What could affect the price of PYUSD?
PayPal USD (PYUSD) maintains its $1 value but faces challenges from adoption, regulations, and competition.
- Regulatory clarity – Compliance with the GENIUS Act builds trust but limits earning features.
- Cross-chain expansion – Adding Arbitrum and Solana boosts usefulness, but adoption trails behind USDT and USDC.
- Institutional adoption – Partnerships with Bullish, Visa, and Mastercard show promise despite yield limits.
Deep Dive
1. Regulatory Compliance (Mixed Impact)
Overview:
The GENIUS Act, effective July 2025, requires U.S. stablecoins like PYUSD to keep a 1:1 reserve in U.S. dollars, bans paying interest to holders, and mandates monthly audits. PYUSD’s issuer, Paxos, follows these rules. While this builds trust through transparency and oversight by New York regulators, it also means PYUSD can’t offer interest or yield, making it less attractive compared to some non-U.S. stablecoins like Ethena’s USDE, which offers high returns (+107% growth after GENIUS).
What this means:
This regulation increases confidence in PYUSD but limits its growth potential since it can’t compete with yield-generating alternatives. Since the GENIUS Act, PYUSD’s supply grew 35% to $1.2 billion, while USDE doubled to $11.6 billion (The Defiant).
2. Multi-Chain Adoption (Positive)
Overview:
PYUSD expanded beyond Ethereum to Arbitrum (July 2025) and Solana (May 2024). These blockchains offer cheaper transaction fees—around $0.01 on Arbitrum compared to $1.50 or more on Ethereum—and allow PYUSD to be used in decentralized finance (DeFi) apps like Aave.
What this means:
This expansion increases PYUSD’s usefulness, especially for large transactions like Bullish’s $1.15 billion IPO, which used PYUSD on Solana. However, PYUSD’s market cap at $1.35 billion is still small compared to USDT ($167 billion) and USDC ($67.5 billion). Continued adoption is needed to close this gap (Crypto News).
3. Traditional Finance Partnerships (Positive)
Overview:
PYUSD is now accepted by major payment networks like Visa, Mastercard, and Stripe. PayPal also allows over 20 million merchants to convert crypto payments into PYUSD, charging a 0.99% fee.
What this means:
These partnerships could increase PYUSD’s everyday use. For example, Visa reported $2.7 billion in stablecoin transaction volume in Q2 2025, with PYUSD making up 8% of new inflows (Chainalysis). The risk is slower merchant adoption or regulatory hurdles around crypto payments.
Conclusion
PYUSD’s stability depends on balancing strict regulations with practical use cases. Cross-chain growth and partnerships with traditional finance firms offer opportunities, but restrictions on earning yield and the dominance of USDT and USDC remain challenges. Keep an eye on PYUSD’s circulating supply (currently $1.35 billion) and how quickly merchants adopt it—can PayPal’s 400 million users help close the gap?
What are people saying about PYUSD?
PYUSD’s network is growing rapidly, like an octopus spreading its arms across different blockchains. Here’s what’s happening:
- Expanding across multiple blockchains with Arbitrum, Stellar, and Visa partnerships
- More merchants accepting PYUSD, with easy crypto-to-PYUSD conversions
- New rewards program encouraging people to hold PYUSD
In-Depth Look
1. @CobakOfficial: PYUSD now on Arbitrum 🚀 (positive news)
"PayPal's PYUSD is now available on Arbitrum – enabling faster and cheaper digital payments."
– @CobakOfficial (89K followers · 412K impressions · July 17, 2025)
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Why it matters: This is great news for PYUSD because Arbitrum’s technology makes transactions quicker and less expensive. This helps PYUSD work better for decentralized finance (DeFi) and payments across different blockchains.
2. @StellarOrg: PYUSD coming to Stellar network 🌐 (positive news)
"Regulators have approved PYUSD on Stellar’s network, known for low-cost global transactions."
– @StellarOrg (1.2M followers · 2.1M impressions · August 18, 2025)
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Why it matters: This opens up PYUSD for international use, especially for small and medium businesses and money transfers in over 180 countries using Stellar’s network.
3. @DiarioBitcoin: Visa supports PYUSD payments 💳 (positive news)
"Visa now supports PYUSD for settlements on Avalanche and Stellar blockchains – speeding up institutional adoption."
– @DiarioBitcoin (327K followers · 787K impressions · July 31, 2025)
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Why it matters: Visa’s involvement connects PYUSD to traditional finance systems, improving liquidity. PYUSD currently has a market cap of $1.35 billion (CoinMarketCap).
Conclusion
The outlook for PYUSD is very positive, thanks to its growing presence on multiple blockchains and increasing use by merchants. Keep an eye on PYUSD’s market share (now 0.033%) compared to competitors like USDC, especially as Visa’s integration expands.
What is the latest news about PYUSD?
PayPal USD (PYUSD) is making strides thanks to supportive regulations and major partnerships. Here’s a quick update:
- Bullish IPO Raises $1.15B Using Solana Stablecoins (August 19, 2025) – PYUSD was part of a historic U.S. IPO settlement on the Solana blockchain.
- GENIUS Act Drives $18B Growth in Stablecoins (August 21, 2025) – PYUSD supply jumped 35% after new U.S. rules clarified how stablecoins can operate.
- Visa and Mastercard Expand PYUSD Payment Options (August 19, 2025) – PYUSD is now accepted on major card networks for international payments.
In-Depth Look
1. Bullish IPO Raises $1.15B Using Solana Stablecoins (August 19, 2025)
What happened: Bullish, a trading platform, raised $1.15 billion in an IPO on the New York Stock Exchange. This was the first time a U.S. public offering was settled using stablecoins like PYUSD and Solana-based USDC/EURC. More than 80% of the funds were held by Coinbase, showing strong trust in Solana’s technology for big financial transactions.
Why it matters: This event highlights PYUSD’s growing role in traditional finance by connecting it with cryptocurrency technology. Solana’s blockchain handled $300 billion in stablecoin transfers in 2025, proving its strength for large-scale financial operations. (Bullish)
2. GENIUS Act Drives $18B Growth in Stablecoins (August 21, 2025)
What happened: The U.S. government passed the GENIUS Act in July 2025, providing clearer rules for stablecoins. This led to an $18 billion increase in stablecoin supply worldwide. PYUSD’s supply grew 35% to $1.2 billion by adjusting its services to meet the new law. Other stablecoins, like Ethena’s USDE, also saw big growth.
Why it matters: Clear regulations are helping PYUSD gain more users, especially institutions. However, U.S. issuers must avoid offering interest on stablecoins, which affects some business models. The GENIUS Act positions PYUSD as a safe, compliant choice for companies. (The Defiant)
3. Visa and Mastercard Expand PYUSD Payment Options (August 19, 2025)
What happened: Visa added PYUSD to its crypto payment platform, allowing transactions in euros and U.S. dollars. Mastercard also started supporting PYUSD for card payments in Europe and the UK. This builds on PayPal’s “Pay with Crypto” feature for merchants.
Why it matters: These partnerships make PYUSD more useful for international business payments. However, fees like Visa’s 0.99% charge might limit its use for everyday shoppers. (Coingape)
Conclusion
PYUSD is gaining momentum thanks to clearer regulations, growing use by institutions, and wider acceptance on payment networks. While its $1.35 billion market value is still small compared to giants like USDT and USDC, strategic moves are setting it up for more business use. The big question: Can PayPal’s focus on compliance help PYUSD outpace decentralized stablecoins in the $2 trillion market?