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What could affect the price of PYUSD?

PYUSD’s stability is being tested by factors like adoption, regulations, and how its yield works.

  1. DeFi Liquidity Growth – A new partnership with Spark aims to bring $1 billion in PYUSD liquidity, increasing its usefulness.
  2. Multichain Expansion – PYUSD is now available on over 10 blockchains (including Arbitrum, Solana, and Tron), opening up more ways to use it.
  3. Regulatory Challenges – Proposed laws like the GENIUS and CLARITY Acts could limit PYUSD’s yield or encourage more institutional use.

Deep Dive

1. DeFi Liquidity Injection (Positive Impact)

Overview: In September 2025, PayPal teamed up with Spark to boost PYUSD liquidity on the blockchain to $1 billion through SparkLend, supported by Spark’s $8 billion reserves. PYUSD has already been integrated into DeFi platforms like SparkLend, where deposits jumped 117% in October 2025.
What this means: More liquidity means less price slippage, making PYUSD more appealing for big investors and DeFi users. Stablecoins with strong liquidity, like USDC, tend to keep their value steady even during market ups and downs.

2. Multichain Expansion (Mixed Impact)

Overview: PYUSD is now live on Ethereum, Solana, Arbitrum, Stellar, and Tron, with LayerZero technology allowing transfers between these blockchains. The total supply doubled to $2.5 billion by September 2025, but PYUSD still holds less than 1% of the stablecoin market compared to USDT and USDC.
What this means: Being available on many blockchains makes PYUSD easier to use in different scenarios, such as sending money on Tron. However, spreading liquidity across many chains can weaken it. For example, Solana holds $624 million in PYUSD (25% of total supply), which could cause price swings specific to that chain.

3. Regulatory & Yield Competition (Potential Risk)

Overview: The U.S. GENIUS Act, passed in July 2025, officially recognized stablecoins. However, the proposed CLARITY Act aims to ban yield programs like PYUSD’s 4% rewards. At the same time, banks offer less than 1% interest on deposits, even though they earn about 5.3% on government bonds (T-bills).
What this means: If the CLARITY Act becomes law, PYUSD’s rewards program—which has helped grow its user base to over 40,000 holders—might end. Still, PayPal’s strategy of investing reserves in T-bills could keep yields going if regulations permit.

Conclusion

PYUSD’s price stability depends on balancing growing use in DeFi with regulatory challenges. While expanding across multiple blockchains and Spark’s liquidity support offer growth opportunities, restrictions on yields or poor reserve management could cause concerns about PYUSD losing its peg. Will PayPal’s treasury approach overcome regulatory hurdles? Keep an eye on monthly reserve reports and updates on the CLARITY Act.


What are people saying about PYUSD?

PayPal USD (PYUSD) is expanding across multiple blockchain networks, stirring discussions about its potential to compete with established stablecoins like USDT and USDC. Here’s what’s happening:

  1. Multichain growth – PYUSD is now available on over 9 blockchain networks through LayerZero technology.
  2. TRON network launch – PYUSD0 is launching on TRON, aiming to tap into TRON’s huge $21 trillion stablecoin transaction volume.
  3. Attractive rewards – PayPal and Venmo users can earn 3.7% annual interest on PYUSD, encouraging more people to use it.
  4. Focus on Latin America – A partnership with Bitso targets easier cross-border money transfers in Latin America.

Deep Dive

1. @pukerrainbrow: PYUSD goes multichain (positive outlook)

"PayPal just expanded PYUSD to multiple blockchains including Stellar, Aptos, Avalanche, Sei, and TRON using LayerZero. This opens up faster payments to 434 million users."
– @pukerrainbrow (58K followers · 1.2M impressions · Sept 20, 2025)
View original post
What this means: This is good news for PYUSD adoption. LayerZero’s cross-chain technology reduces transaction fees and allows PYUSD to be used beyond just Ethereum and Solana blockchains.

2. @MR_0FFICIALL: TRON DeFi integration (positive outlook)

"PYUSD0 on TRON via Stargate Hydra enables seamless, borderless payments. Since TRON handles 60% of global stablecoin transactions, this is a big deal."
– @MR_0FFICIALL (212K followers · 890K impressions · Sept 19, 2025)
View original post
What this means: This expands PYUSD’s presence in decentralized finance (DeFi). With 332 million TRON accounts, PayPal’s stablecoin liquidity becomes accessible to a large user base.

3. Bitso Blog: Latin America remittance strategy (neutral outlook)

PYUSD is now available on Bitso, a major crypto exchange in Latin America, to facilitate cross-border money transfers. This targets the region’s $150 billion remittance market but faces regulatory challenges in countries like Mexico and Brazil.
– Published July 31, 2025
What this means: This move is practical for USD to Mexican Peso transfers but faces competition from USDC and Circle’s Cross-Chain Transfer Protocol (CCTP) in emerging markets.

4. Crypto.News: Rewards program boosts adoption (positive outlook)

Offering 3.7% annual interest on PYUSD held in PayPal and Venmo wallets has helped grow PYUSD’s supply to $1.3 billion by September 2025. However, this is still much smaller than USDT’s $176 billion and USDC’s $75 billion.
– Published July 16, 2025
What this means: The rewards program is driving short-term demand, but its long-term success depends on PayPal’s ability to continue offering these yields, especially if interest rates change.

Conclusion

Overall, the outlook for PYUSD is positive, driven by its rapid expansion across multiple blockchain networks and attractive yield incentives. However, with only 0.84% of the stablecoin market share, PYUSD faces a tough challenge competing against established players like USDT and USDC. The key will be whether PYUSD can sustain its 19% monthly growth in supply (compared to USDC’s 5%) as LayerZero integrations develop, and if it can convert PayPal’s 434 million users into active crypto users.


What is the latest news about PYUSD?

PYUSD is gaining momentum as a stablecoin by increasing liquidity and expanding across multiple blockchains. Here are the key updates:

  1. PYUSD Supply Doubles (October 3, 2025) – The circulating supply reached $2.5 billion, growing 113% in just one month.
  2. Spark Partnership (September 25, 2025) – Aims to boost liquidity to $1 billion through integration with the DeFi platform Spark.
  3. Multichain Expansion (September 20, 2025) – PYUSD launched on nine new blockchains using LayerZero technology.

Deep Dive

1. PYUSD Supply Doubles (October 3, 2025)

Overview:
The amount of PYUSD available in the market jumped to $2.54 billion, more than doubling in a month. Most of this supply is on Ethereum ($1.84 billion) and Solana ($624 million). Daily transfers have reached up to $2 billion. Despite this growth, PYUSD still represents less than 1% of the $300 billion stablecoin market, which is mainly led by USDT and USDC.

What this means:
This growth is a positive sign for PYUSD adoption as PayPal works to make it more accessible. However, competition is strong. The increase shows demand driven by a 4% reward yield and PayPal’s active distribution efforts. (Crypto.News)

2. Spark Partnership (September 25, 2025)

Overview:
PayPal teamed up with the decentralized finance (DeFi) platform Spark to increase PYUSD liquidity from $100 million to $1 billion. SparkLend, a lending platform with an $8 billion reserve, now supports PYUSD, allowing users to borrow and lend without expensive market-making fees.

What this means:
This partnership balances risk and reward. It enhances PYUSD’s usefulness in DeFi, but success depends on how well Spark manages collateral and demand. This move fits PayPal’s plan to make PYUSD a key asset in decentralized finance. (Yahoo Finance)

3. Multichain Expansion (September 20, 2025)

Overview:
PYUSD expanded beyond Ethereum and Solana to nine additional blockchains, including Abstract, Aptos, Avalanche, and Tron, using LayerZero’s Stargate Hydra technology. The new PYUSD0 token supports easy transfers across these blockchains without permission.

What this means:
This expansion improves accessibility, making PYUSD easier to use in different markets and DeFi platforms. However, spreading liquidity across many blockchains could create challenges if it becomes too fragmented. (Crypto Times)

Conclusion

PYUSD is growing quickly through new liquidity partnerships, increased supply, and support across multiple blockchains. While regulatory hurdles and competition remain, its integration into DeFi and cross-chain networks positions it as a strong contender in the stablecoin space. The big question is whether PayPal’s infrastructure can help PYUSD close the gap with market leaders USDT and USDC.


What is expected in the development of PYUSD?

PayPal USD (PYUSD) is growing its cross-chain capabilities and adding more payment options.

  1. Multichain Expansion (Q4 2025) – PYUSD will launch on Stellar, Aptos, Avalanche, and Sei blockchains using LayerZero technology.
  2. Confidential Transfers on Solana (2026) – Merchants will be able to make private transactions that keep amounts hidden but still follow regulations.
  3. Global P2P Crypto Integration (Q4 2025) – PayPal will let users send Bitcoin, Ethereum, and PYUSD through its peer-to-peer payment feature.

Deep Dive

1. Multichain Expansion (Q4 2025)

Overview: PYUSD is expanding beyond Solana to other blockchains like Stellar, Aptos, Avalanche, and Sei by using LayerZero’s cross-chain technology (Stellar, Aptos). This follows its June 2025 launch on Solana, which offered faster and cheaper transactions.

What this means: This expansion could make PYUSD more useful in decentralized finance (DeFi) and international payments. However, it faces strong competition from other popular stablecoins like USDT and USDC on these blockchains, which might limit its growth.

2. Confidential Transfers on Solana (2026)

Overview: According to the Solana white paper, PYUSD will support confidential transfers that let merchants hide transaction amounts while still complying with regulations (PYUSD-Solana Whitepaper).

What this means: This privacy feature is a positive development for PYUSD. It could attract businesses that want to keep their financial details private, setting PYUSD apart from other stablecoins that don’t offer this level of confidentiality.

3. Global P2P Crypto Integration (Q4 2025)

Overview: PayPal plans to allow users to send Bitcoin, Ethereum, and PYUSD through its peer-to-peer “Links” feature. This will start in the U.S. and expand internationally over time (Yahoo Finance).

What this means: This integration makes it easier for PayPal’s 435 million users to use cryptocurrencies directly, bridging traditional finance and crypto. However, expanding globally may face regulatory challenges outside the U.S.

Conclusion

PYUSD’s future focuses on connecting multiple blockchains, adding privacy for merchants, and integrating more cryptocurrencies into PayPal’s payment system. While these steps could increase adoption, PYUSD will need to compete with established stablecoins like USDT and USDC and navigate complex regulations. The question remains: will PayPal’s strong backing and large user base help PYUSD stand out in 2026?


What updates are there in the PYUSD code base?

PayPal USD (PYUSD) is expanding its reach across multiple blockchains by integrating with LayerZero and adding support on new networks.

  1. Omnichain Expansion (September 18, 2025) – PYUSD0, a new version of PYUSD, was launched on 9 additional blockchains using LayerZero’s Hydra protocol.
  2. TRON Integration (September 19, 2025) – PYUSD0 became available on the TRON network through Stargate’s cross-chain system.
  3. Arbitrum Support (July 16, 2025) – PYUSD was added to Arbitrum, a faster and cheaper Ethereum Layer-2 solution.

Deep Dive

1. Omnichain Expansion (September 18, 2025)

What happened: PYUSD introduced PYUSD0, a version that works across multiple blockchains like Aptos, Avalanche, TRON, and six others. This was made possible by LayerZero’s Hydra protocol.

This upgrade allows users to swap PYUSD and PYUSD0 at a 1:1 ratio across different networks with lower fees and faster transaction times. LayerZero’s OFT standard helps these transfers work smoothly while keeping the value equal to one US dollar.

Why it matters: This expansion makes PYUSD more accessible in decentralized finance (DeFi) platforms, which could lead to more people using it for payments and money transfers. (Source)

2. TRON Integration (September 19, 2025)

What happened: PYUSD0 was launched on the TRON blockchain using Stargate Finance’s Hydra system. TRON is known for handling a large volume of stablecoin transactions, making it a strong network for global payments.

This integration uses LayerZero’s OFT standard to allow easy transfers between TRON and other blockchains like Ethereum and Solana.

Why it matters: This move taps into TRON’s large user base and liquidity but also means PYUSD will compete with popular stablecoins like USDT on TRON. (Source)

3. Arbitrum Support (July 16, 2025)

What happened: PYUSD was added to Arbitrum, a Layer-2 solution built on Ethereum that offers much lower transaction fees—about 90% less than the main Ethereum network.

The update also introduced limits on purchases (up to $100,000 per week) and a rewards program that gives holders daily earnings.

Why it matters: Lower fees and rewards could attract more users and merchants who want affordable and efficient payment options. (Source)

Conclusion

PYUSD’s recent updates focus on making it easier to use across different blockchains and improving scalability. With LayerZero enabling smooth transfers and Arbitrum cutting costs, PYUSD’s $2.5 billion market cap might position it as a strong competitor to USDC in the growing Web3 payments space.