What could affect the price of PYUSD?
PayPal USD (PYUSD) faces challenges to its stability from adoption, regulation, and competition.
- Cross-Chain Expansion – Being available on multiple blockchain networks could increase its usefulness (positive).
- Regulatory Scrutiny – Rules and compliance costs might put pressure on its reserves (mixed).
- Stablecoin Competition – New competitors like USDH and USDC are challenging its market position (negative).
Deep Dive
1. Cross-Chain Adoption (Positive Impact)
Overview: PYUSD is now supported on over 11 blockchains, including Ethereum, Solana, Arbitrum, and Tron, thanks to LayerZero’s OFT standard. This allows PayPal’s 434 million users to transfer PYUSD easily across different networks. On Ethereum alone, daily transfers have reached about 1 million transactions, showing growing use in payments and decentralized finance (DeFi).
What this means: Being compatible with many blockchains makes PYUSD more useful for international payments and institutional users, which could increase demand. More usage usually helps keep its value stable, but this depends on maintaining strong reserves (The Block).
2. Regulatory Compliance (Mixed Impact)
Overview: New laws like the U.S. GENIUS Act and the EU’s MiCA require strict audits, licenses, and rules for redeeming stablecoins. Paxos, the company behind PYUSD, has applied for a national trust charter to meet these requirements.
What this means: Following these rules can build trust and attract institutional users but may increase operating costs. For example, MiCA requires holding more cash reserves, which earn less interest and could reduce profitability (KuCoin Ventures).
3. Stablecoin Competition (Negative Impact)
Overview: PYUSD’s market cap is $2.3 billion, much smaller than USDT’s $173 billion and USDC’s $39.7 billion. New stablecoins like Hyperliquid’s USDH and Bastion’s white-label options offer features like sharing yields with users.
What this means: PYUSD might lose users if it can’t offer similar incentives. For instance, USDH shares 50% of its yield with users, while PayPal’s rewards program offers 3.7% APY, which is lower than many DeFi options. This puts pressure on PYUSD to keep users engaged (Cointelegraph).
Conclusion
PYUSD’s stability depends on balancing regulatory compliance with expanding adoption across multiple blockchains and payment systems. While growth into networks like Tron and Arbitrum opens new opportunities, competition and compliance costs could limit its progress. Can PayPal’s rewards program and traditional finance partnerships compete with the higher yields offered by DeFi rivals?
What are people saying about PYUSD?
PayPal USD (PYUSD) is connecting traditional finance and cryptocurrency with new cross-chain features and peer-to-peer (P2P) payment options. Here’s what’s happening:
- Expanding to 5+ blockchain networks using LayerZero technology
- Adding TRON network support for global payments
- Offering zero-fee P2P payment links for crypto transfers
- Market value growing to $1.3 billion as more users adopt it
In-Depth Look
1. PYUSD goes multichain (positive sign)
According to @pukerrainbrow, PYUSD is no longer limited to Ethereum and Solana. It’s now available on Stellar, Aptos, Avalanche, Sei, and TRON networks. LayerZero technology helps move funds across these blockchains with lower fees, benefiting PayPal and Venmo’s 434 million users by enabling faster payments.
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Why it matters: Expanding to multiple blockchains lowers transaction costs and increases how and where PYUSD can be used. This could speed up adoption compared to other stablecoins like USDT and USDC.
2. TRON integration boosts global reach (positive sign)
@MR_0FFICIALL highlights that PYUSD on TRON, enabled by LayerZero’s OFT standard, allows smooth transfers between blockchains. TRON handles the largest volume of stablecoin transactions worldwide, making this a key step for real-world decentralized finance (DeFi) payments.
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Why it matters: TRON’s massive $21 trillion transfer volume could attract institutional investors to PYUSD, especially in emerging markets where TRON is popular for sending money internationally.
3. Zero-fee P2P crypto links simplify payments (positive sign)
As reported by @DiarioBitcoin, PayPal Links lets users send BTC, ETH, and PYUSD without fees or tax paperwork (starting in the U.S.). These payment links expire after 10 days, making peer-to-peer crypto payments easier and faster.
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Why it matters: Removing fees and paperwork lowers barriers for PayPal’s existing users to start using crypto, with PYUSD positioned as the main stablecoin for these transactions.
4. Market cap grows to $1.3 billion (positive sign)
Yahoo Finance reports that PYUSD’s supply has tripled year-over-year to $1.3 billion, surpassing Ethena’s USDe in corporate adoption (36% vs. 29%). PYUSD is fully backed by cash and Treasury securities and undergoes monthly audits.
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Why it matters: Increasing reserves and corporate use show growing trust in PYUSD. However, it still trails larger stablecoins like USDT ($171 billion) and USDC ($74 billion) in total market size.
Conclusion
The outlook for PayPal USD (PYUSD) is positive. Its expansion to multiple blockchains, integration with TRON, easy-to-use P2P payment links, and rising institutional adoption all support growth. While regulatory challenges remain, PayPal’s large user base of 434 million and focus on compliance make PYUSD a strong contender in the stablecoin market. Keep an eye on PYUSD’s circulating supply (currently 2.32 billion) as a sign of ongoing demand after these upgrades.
What is the latest news about PYUSD?
PayPal USD (PYUSD) is growing by connecting to multiple blockchain networks and gaining support from merchants, all while following regulatory rules. Here are the latest updates:
- Expanding Across Multiple Blockchains with LayerZero (September 20, 2025) – PYUSD is now available on over 13 blockchain networks, aiming to improve decentralized finance (DeFi) options and global payments.
- Pay with Crypto Launches (July 28, 2025) – Merchants can accept more than 100 cryptocurrencies, which are instantly converted to PYUSD at checkout.
- Regulatory Approval for Stellar Network Integration (September 19, 2025) – New York regulators approved PYUSD’s use on the Stellar network, enabling low-cost international money transfers.
In-Depth Look
1. Expanding Across Multiple Blockchains with LayerZero (September 20, 2025)
What happened: PayPal teamed up with LayerZero to launch PYUSD0, a version of PYUSD that works across several blockchains including Aptos, Avalanche, and Tron, in addition to Ethereum, Solana, and Stellar. This uses a technology called Omnichain Fungible Token standard to connect these networks. Since the launch, daily transaction volume across these chains has jumped to $15 million.
Why it matters: This expansion increases PYUSD’s usefulness by tapping into large markets like Tron, which handles over $3 billion in stablecoin transactions daily, and Avalanche, popular with institutional investors. However, if users don’t adopt PYUSD on the newer blockchains, liquidity could become spread too thin.
(Decrypt)
2. Pay with Crypto Launches (July 28, 2025)
What happened: U.S. merchants can now accept over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), through PayPal. These payments are instantly converted to PYUSD or U.S. dollars with a small fee of 0.99%. The service works with popular crypto wallets like Coinbase, MetaMask, and Exodus.
Why it matters: This makes PYUSD a convenient way to settle crypto payments, potentially increasing its use in everyday commerce. However, competition is strong, especially from Circle’s USDC stablecoin, which offers merchants a 4% yield incentive.
(CoinDesk)
3. Regulatory Approval for Stellar Network Integration (September 19, 2025)
What happened: The New York Department of Financial Services (NYDFS) approved PYUSD’s expansion onto the Stellar blockchain. This allows for very low-cost transactions (under one cent), which is ideal for sending money internationally and supporting small businesses. Stellar’s network reaches 180 countries, which could help PYUSD grow in emerging markets.
Why it matters: This approval is a positive step for PYUSD’s use in cross-border payments. While PYUSD still trails behind Tether (USDT), which dominates Ethereum with an $80 billion market cap, regulatory compliance makes PYUSD more attractive to institutions.
(The Block)
Conclusion
PYUSD is rapidly expanding by connecting to multiple blockchains, offering new merchant payment options, and working within regulated frameworks. Although its $2.3 billion market cap is much smaller than USDT’s, PayPal’s focus on compliance and strategic growth in DeFi and global payments could help PYUSD carve out a strong position in the $2 trillion stablecoin market. Will PayPal’s careful approach help it outpace competitors? Time will tell.
What is expected in the development of PYUSD?
PayPal USD’s (PYUSD) roadmap is focused on expanding across multiple blockchain networks and increasing real-world use.
- Stellar Integration (Q4 2025) – Launching on Stellar to enable low-cost global payments.
- TRON & Aptos Expansion (2025) – Introducing a permissionless version of PYUSD via LayerZero for decentralized finance (DeFi).
- P2P Crypto Payments (October 2025) – Allowing users to send Bitcoin, Ethereum, and PYUSD directly within the PayPal app.
- Confidential Transfers (TBA) – Adding privacy features for transactions on Solana.
Deep Dive
1. Stellar Integration (Q4 2025)
Overview: PYUSD plans to launch on the Stellar blockchain in the fourth quarter of 2025, pending final approval from the New York Department of Financial Services (Stellar). Stellar is known for very low transaction fees (around $0.00064 per transaction) and fast, around-the-clock settlement. This makes it ideal for sending small payments and remittances globally.
What this means: This move could increase PYUSD’s adoption in developing markets where low cost and speed are essential. However, there are risks such as potential regulatory delays and competition from other stablecoins like USDC already on Stellar.
2. TRON & Aptos Expansion (2025)
Overview: A new permissionless version of PYUSD, called PYUSD0, will launch on multiple blockchains including TRON, Avalanche, Aptos, and Sei. This will be done through LayerZero’s cross-chain technology, which allows tokens to move seamlessly between blockchains without needing wrapped versions (Crypto.News).
What this means: While this may not immediately increase PYUSD’s liquidity, it’s a positive step for integrating PYUSD into decentralized finance (DeFi) applications. TRON is a major player in stablecoin transactions, so this could boost usage if developers build on these platforms.
3. P2P Crypto Payments (October 2025)
Overview: By October 2025, PayPal will let U.S. users send Bitcoin, Ethereum, and PYUSD directly through its app (ChainDesk). These transfers will settle instantly, with PYUSD serving as a bridge currency to facilitate smooth transactions.
What this means: This feature supports PYUSD’s role as a gateway between traditional money and cryptocurrencies. However, it faces challenges like regulatory oversight on peer-to-peer crypto transfers and competition from Venmo’s existing payment services.
4. Confidential Transfers (TBA)
Overview: PayPal is developing a privacy feature on the Solana blockchain that will let merchants hide transaction amounts while still following regulations (PYUSD-Solana Whitepaper). This feature is not yet available.
What this means: While this won’t have an immediate impact, it could encourage business-to-business (B2B) adoption if implemented. Privacy features are attractive to enterprises but may face regulatory challenges.
Conclusion
PYUSD is focusing on making its stablecoin work across different blockchains like Stellar and TRON, while also adding user-friendly features such as peer-to-peer crypto payments. This strategy aims to compete with established stablecoins like USDC and USDT by bridging traditional finance (TradFi) and decentralized finance (DeFi). The success of LayerZero’s technology will be key in helping PYUSD catch up with its competitors.
What updates are there in the PYUSD code base?
PayPal USD (PYUSD) is expanding its reach across multiple blockchains by integrating with LayerZero and launching on new networks.
- Omnichain Expansion (September 18, 2025) – PYUSD0, a new version of PYUSD, launched as a permissionless token on 9 different blockchains using LayerZero technology.
- TRON Integration (September 19, 2025) – PYUSD0 became available on the TRON network, enabling faster cross-chain transactions.
- Arbitrum Support (July 16, 2025) – PYUSD was added to Arbitrum, a Layer-2 solution for Ethereum, offering cheaper and quicker transactions.
Deep Dive
1. Omnichain Expansion (September 18, 2025)
Overview: PYUSD introduced PYUSD0, a new version that works across multiple blockchains without needing permission. It supports networks like TRON, Avalanche, Aptos, and six others by using LayerZero’s OFT standard.
This upgrade uses Stargate Hydra’s cross-chain technology, allowing PYUSD to move between blockchains directly, without relying on centralized middlemen. Older versions of bridged PYUSD (like BYUSD on Berachain) have been merged into PYUSD0, bringing all liquidity together.
What this means: This is a positive development for PYUSD because it reduces fragmentation, lowers transaction fees, and opens up more opportunities in decentralized finance (DeFi) and global payments. Users can now easily transact across popular networks such as TRON, known for high stablecoin volume, and Avalanche, known for fast transaction settlements.
(Source)
2. TRON Integration (September 19, 2025)
Overview: PYUSD0 launched on the TRON blockchain using LayerZero’s OFT standard. TRON handles over $50 billion in stablecoin transactions daily.
TRON processes about 40% of all stablecoin transfers worldwide. With PYUSD0 on TRON, transactions finalize in under 5 seconds and are compatible with TRON’s DeFi platforms like SunSwap.
What this means: This is a neutral development for PYUSD. While it gains access to TRON’s large liquidity pool, it faces strong competition from established stablecoins like USDT. However, PayPal’s strong regulatory compliance may attract institutional investors looking for trustworthy payment options.
(Source)
3. Arbitrum Support (July 16, 2025)
Overview: PYUSD was deployed on Arbitrum, a Layer-2 scaling solution for Ethereum that cuts transaction fees by about 90% compared to the Ethereum main network.
This move followed Paxos shifting its token platform to Arbitrum, enabling faster PYUSD transfers for PayPal’s 435 million users.
What this means: This is a positive step for PYUSD because lower fees make small transactions more practical. This could boost PYUSD’s use in areas like gaming, NFTs, and international money transfers.
(Source)
Conclusion
PYUSD is evolving to focus on working smoothly across multiple blockchains (using LayerZero) and improving scalability (with Layer-2 solutions like Arbitrum). Although its $2.3 billion market cap is smaller than competitors like USDT and USDC, these updates show PayPal’s commitment to competing in cross-border payments and decentralized finance. The question remains: will PYUSD’s regulatory compliance and ability to operate on multiple chains help it carve out a unique position against established stablecoins?