Bootstrap
Trading Non Stop
ar | bg | cz | dk | de | el | en | es | fi | fr | in | hu | id | it | ja | kr | nl | no | pl | br | ro | ru | sk | sv | th | tr | uk | ur | vn | zh | zh-tw |

What is expected in the development of PYUSD?

PayPal USD (PYUSD) is expanding across multiple blockchains and use cases to improve global payments.

  1. Omnichain Expansion (September 2025) – PYUSD0 launches on 9+ blockchains using LayerZero technology.
  2. DeFi Integration (October 2025) – Institutional lending available through Spark Protocol.
  3. Confidential Transfers (2026) – Privacy features introduced on Solana blockchain.
  4. Regulatory Adaptation – Compliance with the U.S. GENIUS Act.

Deep Dive

1. Omnichain Expansion (September 2025)

Overview: PYUSD is now available on Tron, Avalanche, Aptos, and six other blockchains through LayerZero’s Hydra Stargate bridge. This introduces PYUSD0, a new version that works across multiple blockchains without restrictions (CryptoTimes). Existing versions like BYUSD on Berachain will move to PYUSD0, allowing easy transfers across more than 140 networks.

What this means:

2. DeFi Integration (October 2025)

Overview: Spark Protocol will offer fixed-rate loans for institutions and launch a mobile app, supported by $1 billion in PYUSD liquidity (CryptoTimes). This follows PayPal’s $28 million investment in Stablechain, focusing on emerging markets.

What this means:

3. Confidential Transfers (2026)

Overview: Solana plans to add confidential transfers using Token Extensions, allowing merchants to hide transaction amounts while still enabling audits.

What this means:

4. Regulatory Adaptation

Overview: The GENIUS Act, effective July 2025, limits how stablecoins can advertise “yield.” PayPal is responding by presenting PYUSD rewards as direct payments (3.7% APR through Paxos) instead of interest.

What this means:

Conclusion

PYUSD’s plan focuses on making the stablecoin work seamlessly across blockchains, offering useful financial products for institutions, and staying compliant with regulations. While expanding to many blockchains could create challenges in keeping liquidity strong, PayPal’s approach of offering compliant, low-cost payments positions PYUSD to compete with other major stablecoins like USDT and USDC.

What to watch: Will PYUSD’s expansion across multiple blockchains speed up adoption in remittances and emerging markets?


What updates are there in the PYUSD code base?

PayPal USD (PYUSD) is growing its reach by connecting to more blockchain networks and adding new features.

  1. Cross-Chain Expansion with LayerZero (September 18, 2025) – PYUSD0 launched, allowing easy transfers across 9+ blockchain networks.
  2. Arbitrum Integration (July 16, 2025) – Added support for Ethereum’s Layer-2 network, cutting transaction costs and improving decentralized finance (DeFi) use.
  3. Rewards Program Launch (July 16, 2025) – PYUSD holders can earn daily rewards, paid monthly.

Deep Dive

1. Cross-Chain Expansion with LayerZero (September 18, 2025)

What happened: PayPal introduced PYUSD0, a new version of PYUSD that works across multiple blockchains without needing permission. This is powered by LayerZero’s Stargate Hydra technology.

Using LayerZero’s OFT standard, PYUSD and PYUSD0 now operate smoothly across networks like Tron, Avalanche, and Aptos. This means users can move their PYUSD tokens between these blockchains easily, without relying on a central authority.

Why it matters: This is a big positive for PYUSD. It makes the stablecoin available on over 140 blockchain networks, lowers fees when moving tokens between chains, and strengthens PayPal’s role in decentralized finance. (Source)

2. Arbitrum Integration (July 16, 2025)

What happened: PYUSD became available on Arbitrum, a Layer-2 scaling solution for Ethereum. Layer-2 solutions help make transactions faster and cheaper.

This move follows Paxos shifting its token platform to Arbitrum in 2024. Now, users can send PYUSD with gas fees about 90% lower than on Ethereum’s main network, while still using Ethereum-based DeFi apps.

Why it matters: This is a neutral update for PYUSD. It improves transaction speed and cost but faces competition from other stablecoins already on Layer-2 networks. Developers can now build on Arbitrum’s platform, which might increase PYUSD’s use. (Source)

3. Rewards Program Launch (July 16, 2025)

What happened: PayPal started a rewards program for users holding at least 1 PYUSD. Holders earn daily interest, with an example rate of 4% annual percentage yield (APY), paid monthly.

Rewards accumulate daily and compound monthly. There are no fees for holding or transferring PYUSD. This program aims to encourage PayPal’s 434 million active users to keep PYUSD longer.

Why it matters: This is positive for PYUSD because it adds value as a savings option, competing with traditional bank interest rates. However, the rewards depend on PayPal’s terms and could change over time.

Conclusion

PYUSD’s recent updates focus on making the stablecoin work across more blockchains (LayerZero), improving transaction speed and cost (Arbitrum), and rewarding users for holding it. These steps fit PayPal’s goal to connect traditional finance with the growing world of Web3. The big question remains: will expanding cross-chain use help PYUSD overcome regulatory challenges as it grows?


Why did the price of PYUSD go up?

PayPal USD (PYUSD) has stayed steady over the past 24 hours, trading right around $1.00 with a tiny change of -0.008%. But behind the scenes, some important developments are building momentum:

  1. Multi-chain expansion – PYUSD is now available on the Tron blockchain through LayerZero, making it easier to use across different networks.
  2. Liquidity partnerships – Spark Protocol is planning to put $1 billion into PYUSD liquidity pools to boost its use in decentralized finance (DeFi).
  3. Regulatory compliance – Workarounds under the GENIUS Act help U.S. users keep earning yield options safely.

Deep Dive

1. Cross-Chain Expansion (Positive Outlook)

Overview: On September 19, 2025, PYUSD launched on the Tron blockchain using LayerZero’s OFT standard. This adds to its presence on Ethereum, Solana, Stellar, and Avalanche, allowing seamless transfers across more than nine blockchains.

What this means:

What to watch: Adoption on Tron is key — Tron currently hosts $94 billion in USDT stablecoins, while PYUSD’s volume on Ethereum is $1.3 billion.

2. Institutional Liquidity Push (Mixed Outlook)

Overview: Spark Protocol has committed $1 billion from its $8 billion treasury to PYUSD liquidity pools, with $200 million already added as of September 25.

What this means:

What to watch: Spark’s version 2 launch in October 2025 will introduce fixed-rate loans and a mobile app, which could increase user engagement.

Conclusion

While PYUSD’s price has been stable (-0.008% in 24 hours), it’s quietly growing in strategic ways. Its cross-chain reach now covers five major networks, and Spark’s liquidity support aims to challenge USDC’s strong position in DeFi. Still, Tether’s 65% share of the stablecoin market remains a significant hurdle.

Key question: Will PYUSD’s expansion on Tron lead to noticeable growth beyond its current daily trading volume of $98.6 million?


What could affect the price of PYUSD?

The stability of PayPal USD (PYUSD) depends on how well it is adopted, regulated, and how it competes in the market.

  1. Multi-chain expansion – Connecting PYUSD to multiple blockchains increases its usefulness but could spread out liquidity.
  2. Regulatory scrutiny – New rules from the GENIUS Act challenge how PYUSD offers rewards.
  3. Stablecoin competition – Big players like USDT and USDC, along with new stablecoins, create pressure on PYUSD’s growth.

Deep Dive

1. Multi-Chain Expansion (Mixed Impact)

Overview: PYUSD is now available on several blockchains including Ethereum, Solana, Arbitrum, Stellar, and Tron, thanks to LayerZero’s technology that allows it to work across different networks. Recently, PYUSD partnered with Spark Protocol to add $1 billion in liquidity, aiming to boost its use in decentralized finance (DeFi) (Spark Protocol).

What this means: Making PYUSD accessible on many blockchains can increase demand, but it also risks spreading liquidity thin. For example, PYUSD on Tron targets users who trade large volumes, but the costs and technical challenges of moving assets between chains could reduce overall benefits.

2. Regulatory Compliance (Bearish Risk)

Overview: The GENIUS Act, effective July 2025, limits how stablecoins can offer yield or rewards. PYUSD must now present its 4% rewards as something other than interest payments to comply (The Defiant).

What this means: Unclear regulations may make PYUSD less attractive compared to other stablecoins that offer yield, like Ethena’s USDe. If rules become stricter, PayPal might have to lower rewards, which could reduce demand.

3. Market Competition (Bearish Pressure)

Overview: PYUSD’s market value is $2.48 billion, much smaller than USDT’s $175 billion and USDC’s $74 billion. New stablecoins like USDe ($14.7 billion) and upcoming euro-backed stablecoins from banks (expected in 2026) increase competition (CoinJournal).

What this means: PYUSD’s growth, which rose 152% in the third quarter of 2025, depends on PayPal’s large user base of 435 million. However, expanding use in DeFi and international payments is key to competing with rivals that have more liquidity.

Conclusion

PYUSD’s success relies on balancing regulatory rules with aggressive growth through multi-chain support and DeFi partnerships. PayPal’s strong brand and Spark Protocol’s liquidity boost help, but competition and changing regulations remain significant challenges. Will PYUSD be able to maintain its 1:1 value peg and outpace algorithmic competitors under increasing regulatory pressure?


What are people saying about PYUSD?

PayPal USD (PYUSD) is making waves by expanding across multiple blockchain networks and boosting liquidity with a $1 billion investment. Here’s what’s trending:

  1. PYUSD0 now live on TRON – Justin Sun calls it “borderless DeFi rails” 🚄
  2. Spark’s $1 billion liquidity boost – Onchain capital fuels PYUSD’s growth 💸
  3. Stellar and Arbitrum launches – Focus on faster payments and lower fees ⚡

Deep Dive

1. @MR_0FFICIALL: TRON integration opens global payments (positive)

“With PYUSD0 live on TRON, we’re seeing real-world payments connect with decentralized finance (DeFi).”
– @MR_0FFICIALL (58K followers · 412K impressions · September 19, 2025)
View original post
What this means: This is good news for PYUSD because TRON is a major player in stablecoin transactions, having processed over $21 trillion historically. With more than 170 million users, TRON could help PYUSD reach a wider audience.

2. @thedefiant: Spark’s $1 billion liquidity injection (positive)

Spark Protocol announced it is deploying $1 billion worth of PYUSD through its onchain treasury. This move is driven by institutional demand for “deep liquidity without market maker markups.”
– The Defiant (October 2, 2025)
What this means: This shows strong confidence in PYUSD’s use in DeFi. Spark’s reserves of over $8 billion support sustainable yield opportunities, making PYUSD more attractive to investors.

3. @StellarOrg: Stellar launch targets emerging markets (neutral)

Stellar has received regulatory approval to integrate PYUSD, aiming to lower cross-border payment costs in over 170 countries.
– @StellarOrg (1.2M followers · 287K impressions · August 18, 2025)
View original post
What this means: This is a neutral development in the short term. While Stellar’s low fees benefit merchants, PYUSD faces competition from USDC, which already has a strong presence on Stellar.

Conclusion

The outlook for PYUSD is positive, driven by its ability to operate across multiple blockchains and strong institutional partnerships. Although its $2.48 billion market cap is smaller than USDT and USDC, PayPal’s 434 million users and LayerZero’s multichain technology give PYUSD an edge in scaling. Keep an eye on PYUSD’s 30-day supply growth (currently +2.33%) compared to USDT’s dominance — continued growth could signal a breakout opportunity.


What is the latest news about PYUSD?

PYUSD is adapting to new regulations and growing its ecosystem. Here’s what’s new:

  1. Supply Increase & KPMG Verification (October 2, 2025) – PYUSD supply reached 1.17 billion tokens, fully backed by reserves.
  2. Boosting DeFi Liquidity (October 1, 2025) – Spark Protocol plans to add $1 billion in PYUSD for institutional lending.
  3. GENIUS Act Workaround (October 1, 2025) – PYUSD offers a 3.7% APR through “payment rewards” to comply with yield restrictions.

In-Depth Look

1. Supply Increase & KPMG Verification (October 2, 2025)

Summary:
Paxos released its monthly report confirming that 1.17 billion PYUSD tokens are in circulation, each backed 1:1 by reserves that exceed the total token value. Their gold-backed token, PAXG, also reached a market value of $1.15 billion, showing growing trust from institutional investors.

Why it matters:
This update is neutral for PYUSD’s growth but important for transparency. Having reserves that fully cover the tokens shows strong risk management, which is crucial for regulated stablecoins competing with algorithm-based ones. (Binance News)

2. Boosting DeFi Liquidity (October 1, 2025)

Summary:
Spark Protocol announced it will add $1 billion in PYUSD liquidity through its automated system, focusing on institutional lending on the Ethereum blockchain. They also plan to include PYUSD in their upcoming mobile app. This builds on their previous $8 billion commitment to support PYUSD in decentralized finance (DeFi).

Why it matters:
This is a positive move for PYUSD. Spark’s efforts could increase PYUSD’s use in DeFi lending pools, attracting more institutional investors. More liquidity on the blockchain can also help keep PYUSD stable during market ups and downs. (Crypto Times)

3. GENIUS Act Workaround (October 1, 2025)

Summary:
To follow the GENIUS Act, which restricts stablecoins from offering interest, PayPal is presenting its 3.7% APR as “payment rewards” instead of traditional interest. This approach avoids regulatory issues while staying competitive with other stablecoins like Tether and Circle.

Why it matters:
This is somewhat positive for PYUSD. The workaround keeps yield options open for U.S. users, though regulatory uncertainty remains. If this continues, PYUSD could gain market share from USDC, which faces stricter rules under the GENIUS Act. (The Defiant)

Conclusion

PYUSD is growing its reserves, increasing its presence in DeFi, and adjusting to new regulations. These steps position it to challenge the dominance of USDT and USDC. The big question is whether PYUSD’s yield strategy can hold up as regulatory pressure grows.