What could affect the price of PYUSD?
The stability of PayPal USD (PYUSD) depends on how widely it’s adopted, regulatory rules, and competition in the market.
- Cross-Chain Expansion – Connecting PYUSD to multiple blockchains could increase its usefulness (positive).
- Regulatory Oversight – U.S. rules under the GENIUS Act vs. challenges in global acceptance (mixed impact).
- Market Competition – PYUSD lags behind bigger stablecoins like USDT and USDC in liquidity; partnerships are key to growth (potential risk).
Deep Dive
1. Cross-Chain Integration (Positive Impact)
Overview: On September 18, 2025, PYUSD became available on eight new blockchains—including Tron, Avalanche, and Aptos—through LayerZero technology, allowing users to move PYUSD freely across different blockchain networks. This builds on earlier launches on Ethereum, Solana, and Stellar. PayPal plans to use its 434 million users to expand PYUSD’s use in payments and decentralized finance (DeFi).
What this means: Making PYUSD accessible on more blockchains can increase demand, especially in areas like Latin America where PayPal is popular for sending money internationally. However, spreading PYUSD across many blockchains could reduce liquidity if not enough users adopt it on each chain.
2. U.S. Regulatory Framework (Mixed Impact)
Overview: The GENIUS Act, passed in July 2025, requires stablecoin issuers in the U.S. to keep full reserves backing their coins and bans paying interest or yields to holders. PYUSD follows these rules, but some competitors, like Ethena’s USDE, have grown quickly by offering yield strategies outside the U.S.
What this means: Clear regulations help build trust in PYUSD’s backing but limit its ability to compete with stablecoins that offer earnings to users. PayPal’s 3.7% rewards program paid in PYUSD avoids direct yield payments, but long-term success depends on balancing compliance with innovation (The Defiant).
3. Stablecoin Market Dynamics (Potential Risk)
Overview: PYUSD’s market value of $1.55 billion is much smaller than USDT’s $171 billion and USDC’s $74 billion. While partnerships with Visa and Mastercard (launched August 2025) help adoption, PYUSD faces challenges due to lower liquidity and trading volume (5.35% turnover vs. USDT’s 300%+), which can make price stability harder to maintain.
What this means: Lower liquidity means PYUSD is more vulnerable to price fluctuations during market swings. PayPal’s strong brand and partnerships, like with Bitso for Latin American remittances, offer growth opportunities, but PYUSD needs to compete effectively against USDT’s dominance in trading.
Conclusion
PYUSD’s short-term stability depends on expanding its use across multiple blockchains while following U.S. regulations. Over the long term, its success will hinge on finding unique roles in payments and international money transfers, competing with USDT and USDC’s strong presence in trading. Keep an eye on Q4 2025 data to see if PYUSD’s trading volume increases significantly after its multichain expansion.
What are people saying about PYUSD?
PYUSD’s move to multiple blockchains is generating buzz, mixing excitement about reaching more users with questions about how it stacks up against established stablecoins like USDT and USDC. Here’s what’s trending:
- TRON integration – positive for decentralized finance (DeFi) growth
- Arbitrum rewards program – encouraging users to hold PYUSD
- Visa’s support for stablecoins – showing real-world use cases
Deep Dive
1. @MR_0FFICIALL: PYUSD launches on TRON via LayerZero – a positive sign
“PYUSD0 on TRON enables smooth cross-chain payments for 434 million PayPal and Venmo users. TRON processes about half of the world’s stablecoin transactions – this is more than just a simple connection.”
– @MR_0FFICIALL (12.4K followers · 38K impressions · 2025-09-19 22:53 UTC)
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What this means: This is a good sign for PYUSD because TRON is a major player in stablecoin transactions, especially in emerging markets. This could help PYUSD become popular for sending money across borders and everyday payments.
2. @pukerrainbrow: PYUSD goes multichain – positive development
“Now available on Stellar, Aptos, Avalanche, Sei & TRON. LayerZero lowers fees – could PYUSD surpass $1 billion in daily payments?”
– @pukerrainbrow (8.2K followers · 27K impressions · 2025-09-20 04:00 UTC)
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What this means: Expanding to blockchains with lower fees makes PYUSD more useful for small transactions and DeFi applications. However, it still faces tough competition from USDC, which is already widely used across many blockchains.
3. CoinMarketCap Community: Arbitrum rewards encourage holding – neutral impact
“Hold 1 or more PYUSD in PayPal’s Cryptocurrencies Hub to earn daily rewards. The exact annual percentage yield (APY) isn’t shared, but it suggests a plan to keep users engaged long-term.”
– Posted 2025-07-16 12:30 UTC (1.2K likes · 420 comments)
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What this means: This is neutral for PYUSD. While rewards might help keep demand steady, the lack of clear information about returns and the fact that funds are held in a centralized way may limit appeal for users who prefer decentralized finance.
Conclusion
Overall, the outlook for PYUSD is positive, thanks to its expansion across multiple blockchains and partnerships with traditional finance leaders like Visa. Still, some remain skeptical about whether PYUSD can challenge the dominance of USDT and USDC without clearer incentives or supportive regulations. Keep an eye on PYUSD’s circulating supply (currently $1.55 billion) to see if it gains real, ongoing use beyond just speculative trading.
What is the latest news about PYUSD?
PayPal USD (PYUSD) is speeding up its expansion across multiple blockchains and increasing its use in everyday transactions. Here are the key updates:
- TRON Integration (September 19, 2025) – PYUSD is now available on the TRON network through LayerZero, improving cross-border decentralized finance (DeFi) liquidity.
- Multichain Expansion (September 18, 2025) – PYUSD0, a permissionless version of PYUSD, launched on eight new blockchains, including Avalanche and TRON.
- Market Cap Milestone (September 22, 2025) – PYUSD’s market value reached $1.55 billion, supported by investments from exchange-traded funds (ETFs) and favorable regulations.
Deep Dive
1. TRON Integration (September 19, 2025)
Overview:
PYUSD0, the permissionless version of PayPal USD, was launched on the TRON blockchain using LayerZero’s Omnichain Fungible Token (OFT) standard. This technology allows PYUSD to move smoothly between TRON’s fast network and other blockchains like Ethereum and Solana. Since TRON handles about 45% of the world’s stablecoin transactions, this move positions PYUSD well for remittance markets in the Asia-Pacific region.
What this means:
This is a positive development for PYUSD’s liquidity because TRON’s $11.7 billion stablecoin ecosystem connects well with payment apps and DeFi platforms. However, PYUSD will face strong competition from USDT, which currently holds 80% of TRON’s stablecoin market. (source)
2. Multichain Expansion (September 18, 2025)
Overview:
PYUSD0 was launched on Avalanche, Aptos, Sei, and five other blockchains using LayerZero and Stargate Hydra technology. This allows users to create (mint), destroy (burn), and transfer PYUSD across different blockchains without needing centralized middlemen.
What this means:
This development is neutral to positive for PYUSD adoption. Making PYUSD work across multiple blockchains reduces transaction costs and opens up more ways to use it, such as cross-chain payments. Still, PYUSD’s market cap of $1.55 billion is much smaller than USDT’s $171 billion and USDC’s $74 billion. Growth will depend on how many of PayPal’s 435 million users start using these crypto features. (source)
3. Market Cap Growth (September 22, 2025)
Overview:
PYUSD’s market cap increased by 10% in September, reaching $1.55 billion. This growth was driven by positive ETF investments and clearer regulations under the GENIUS Act. Analysts also expect Bitcoin (BTC) to break above $120,000 in October, which could increase demand for stablecoins like PYUSD.
What this means:
The overall market environment is favorable as PayPal leverages its traditional finance partnerships. However, PYUSD’s share of the crypto market is still small at 0.04%, compared to USDT’s 4.4%. (source)
Conclusion
PYUSD is making smart moves by expanding on popular blockchains like TRON and benefiting from clearer regulations. While its growth looks promising, it still needs to overcome USDT’s strong market position and encourage PayPal’s large user base to adopt crypto payments. The big question is whether cross-chain compatibility will help PYUSD become one of the top three stablecoins by 2026.
What is expected in the development of PYUSD?
PayPal USD’s (PYUSD) plan focuses on expanding across multiple blockchain networks and increasing real-world use.
- Stellar Integration (2025) – Approved by regulators, launch coming soon.
- Multichain Expansion (Q4 2025) – Available on Aptos, Avalanche, Sei, and Tron.
- TRON Launch via LayerZero (2025) – A new permissionless PYUSD0 token for decentralized finance (DeFi).
- Crypto Payment Integration (Ongoing) – Support for Bitcoin and Ethereum in peer-to-peer payments.
Deep Dive
1. Stellar Integration (2025)
Overview:
In August 2025, PYUSD got the green light from the New York Department of Financial Services (NYDFS) to be issued on the Stellar blockchain (Stellar). Stellar is known for very low transaction fees (about $0.00064 per transaction) and fast, around-the-clock settlements. This makes it ideal for small payments and sending money across borders.
What this means:
This is a positive step for PYUSD, especially in emerging markets where Stellar already works with companies like MoneyGram and Visa. However, PYUSD will face competition from USDC, another stablecoin on Stellar, which might limit how much PYUSD is used.
2. Multichain Expansion (Q4 2025)
Overview:
PYUSD is already live on Solana, Ethereum, and Arbitrum, and plans to expand to Aptos, Avalanche, Sei, and Tron by the end of 2025 (LayerZero). This expansion uses LayerZero’s OFT standard, which helps reduce the cost of moving tokens between blockchains by about 40%.
What this means:
This move could increase the availability and liquidity of PYUSD, making it easier to use across different platforms. However, spreading out too much might reduce the benefits of having a strong presence on just a few networks. For example, Arbitrum’s integration in July 2025 (July 2025) helped PYUSD become more useful in DeFi by lowering fees.
3. TRON Launch via LayerZero (2025)
Overview:
On September 19, 2025, PYUSD0, a permissionless version of PYUSD, launched on the TRON blockchain using Stargate’s Hydra bridge (TRON). TRON handles about 40% of the world’s stablecoin transactions.
What this means:
This is a strong opportunity for PYUSD in the Asia-Pacific region, where TRON is very popular. However, TRON’s ecosystem faces regulatory scrutiny, which could pose risks for users and investors.
4. Crypto Payment Integration (Ongoing)
Overview:
On September 15, 2025, PayPal added PYUSD, Bitcoin, and Ethereum to its peer-to-peer payment service (ChainDesk). This allows merchants to instantly convert crypto payments into regular currency.
What this means:
This is a big boost for mainstream adoption since PayPal has 435 million users worldwide. The transaction fee of 0.99% is lower than many traditional cross-border payment services. Still, PYUSD faces competition from USDC, which already has well-established merchant tools.
Conclusion
PYUSD is rapidly growing across multiple fast blockchain networks and payment systems, aiming to serve both decentralized finance and traditional financial markets. While regulatory approvals like those from NYDFS are still needed, PYUSD’s strategy to operate on many blockchains could help it connect traditional (Web2) and blockchain-based (Web3) economies. The key question remains: will PYUSD’s focus on compliance help it surpass competitors like USDT in gaining institutional users?
What updates are there in the PYUSD code base?
PayPal USD (PYUSD) is expanding its reach across multiple blockchains using LayerZero technology.
- Multichain Expansion (September 20, 2025) – PYUSD is now available on Stellar, Aptos, Avalanche, Sei, and Tron blockchains.
- TRON Integration via LayerZero (September 19, 2025) – PYUSD0 launched as an open, permissionless token on TRON.
- Arbitrum Support (July 16, 2025) – PYUSD deployed on Ethereum’s Layer 2 solution, Arbitrum, for faster and cheaper transactions.
Deep Dive
1. Multichain Expansion (September 20, 2025)
Overview: PYUSD has expanded to five new blockchain networks—Stellar, Aptos, Avalanche, Sei, and Tron—by using LayerZero’s cross-chain technology. This allows PayPal’s 434 million users to send and receive PYUSD with lower fees and faster processing times.
LayerZero uses a standard called OFT (Omnichain Fungible Token), which lets PYUSD move smoothly between different blockchains. For example, Avalanche offers near-instant transaction finality, while Tron supports high-volume stablecoin transactions, making PYUSD more useful for decentralized finance (DeFi) and international money transfers.
What this means: This expansion is positive for PYUSD because being available on more blockchains increases its usefulness for everyday payments and DeFi applications. It could also help PYUSD compete with other popular stablecoins like USDT and USDC. (Source)
2. TRON Integration via LayerZero (September 19, 2025)
Overview: PYUSD0, a permissionless version of PYUSD, was launched on the TRON blockchain using Stargate Finance’s Hydra bridge.
TRON handles about half of all global USDT stablecoin transactions, making it a major player in stablecoin settlements. By using LayerZero’s technology, PYUSD0 can move freely between TRON, Avalanche, and Sei blockchains, improving liquidity across these networks.
What this means: This development is neutral for PYUSD overall. It adds flexibility but also increases dependence on third-party bridges, which can introduce risks. However, TRON’s low transaction fees may encourage more users in emerging markets to adopt PYUSD0. (Source)
3. Arbitrum Support (July 16, 2025)
Overview: PYUSD was deployed on Arbitrum, a Layer 2 scaling solution for Ethereum. This reduces transaction fees by about 90% compared to using Ethereum’s main network.
This move supports PayPal’s goal to make PYUSD more useful in DeFi. Popular DeFi platforms on Arbitrum, like GMX and Uniswap, now have access to PYUSD liquidity, and users benefit from faster transaction settlements.
What this means: This is a positive step for PYUSD because Layer 2 solutions like Arbitrum make it a more affordable stablecoin option for Ethereum-based applications. However, competition with established stablecoins like USDC remains strong. (Source)
Conclusion
PYUSD’s recent updates show a clear strategy to improve cross-chain compatibility and make the stablecoin more useful for both DeFi and everyday payments. With LayerZero enabling smooth transfers across blockchains and key integrations on Layer 2 and TRON, PYUSD is positioning itself to better compete with USDT and USDC in transaction volume.