What could affect the price of PYUSD?
PYUSD’s stability is influenced by both positive growth factors and regulatory challenges.
- Multi-chain expansion – Connecting with over 11 blockchains could increase its usefulness.
- Regulatory clarity – The GENIUS Act reduces legal uncertainty for U.S. stablecoins.
- Competition – Big players like Visa, Walmart, and Amazon could challenge PYUSD’s market position.
Deep Dive
1. Multi-Chain Expansion (Positive Outlook)
Overview:
PYUSD has expanded to popular blockchains like Arbitrum, Solana, Tron, and Stellar using LayerZero’s cross-chain technology. This allows faster transactions and access to 434 million PayPal and Venmo users. On September 26, 2025, daily transfers reached $2 billion, and the total supply doubled to $2.5 billion in just one month (Crypto.news).
What this means:
By working across multiple blockchains, PYUSD makes global payments and decentralized finance (DeFi) easier and more efficient. This wider adoption could increase demand for PYUSD as a payment method. However, Tether still dominates the market with a 58% share, which limits PYUSD’s growth potential.
2. Regulatory Tailwinds (Mixed Impact)
Overview:
The GENIUS Act, passed in July 2025, is the first U.S. law to regulate payment stablecoins. It requires stablecoins to have a 1:1 reserve backing and FDIC insurance. PayPal already meets these standards, with monthly audits conducted by WithumSmith+Brown.
What this means:
Clear regulations may encourage institutional investors to use PYUSD, but they also bring compliance costs. Proposed laws like the CLARITY Act, which aims to ban earning interest on stablecoins, could threaten PYUSD’s 4% rewards program—a key factor driving its growth.
3. Corporate Competition (Potential Risk)
Overview:
Visa plans to launch its own stablecoin settlement system in April 2026, and Walmart and Amazon are rumored to be developing USD-pegged tokens. While Visa supports multiple stablecoins including PYUSD, it is likely to favor its own system.
What this means:
PayPal’s early lead in the stablecoin market may weaken as these large companies use their existing merchant networks to promote their own tokens. PYUSD currently holds just 0.84% of the stablecoin market compared to Tether’s 58%, so it faces significant competition unless it grows faster than the overall market.
Conclusion
PYUSD’s price stability depends on balancing regulatory compliance with expanding its presence across multiple blockchains. Its partnership with Spark aims to reach $1 billion in liquidity, and blockchain integrations improve its usefulness. However, competition from traditional financial giants and potential restrictions on yield programs present challenges.
Watch: Will PYUSD maintain over 50% monthly supply growth as competition in the stablecoin market heats up?
What are people saying about PYUSD?
PayPal USD (PYUSD) is generating excitement with its growth plans and ambitions in decentralized finance (DeFi), but it faces strong competition from other stablecoins. Here’s the key buzz:
- Multichain growth – Integrations with TRON, Arbitrum, and Stellar are driving adoption hopes
- Payments expansion – Merchants can now accept over 100 cryptocurrencies through PYUSD conversion
- Liquidity boost – A $1 billion partnership with Spark aims to enhance DeFi use cases
- Regulatory challenges – Delays in New York Department of Financial Services (NYDFS) approval restrict access in New York
Deep Dive
1. @MR_0FFICIALL: TRON Integration via LayerZero bullish
"PYUSD0 live on TRON enables borderless DeFi rails through 24/7 settlements"
– @MR_0FFICIALL (89K followers · 2.1M impressions · 2025-09-19 22:53 UTC)
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What this means: TRON handles a huge volume of stablecoin transactions—over $21 trillion cumulatively. This integration could speed up PYUSD’s use for sending money internationally and in emerging markets where fast, low-cost payments are crucial.
2. @CryptoMinuteAI: "Pay with Crypto" Feature neutral
"0.99% fees undercut card networks, but require holding PYUSD for rewards"
– @CryptoMinuteAI (312K followers · 4.8M impressions · 2025-07-30 01:39 UTC)
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What this means: The new payment feature charges a 0.99% fee, which is lower than typical credit card fees. However, users must hold PYUSD to earn rewards. For small businesses, the 1.5% fee after promotions is still tight compared to Visa’s 2.9%, so margins remain slim.
3. Investing.co.uk: $1B Spark Liquidity Partnership bullish
"PYUSD deposits on SparkLend target institutional DeFi participation"
– Investing.co.uk (Verified Publisher · 2025-10-04 15:45 UTC)
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What this means: Spark’s $8 billion reserves backing PYUSD could help keep its value stable during market ups and downs. This partnership also opens up more opportunities for lending and borrowing within DeFi, attracting institutional investors.
4. CoinMarketCap: NY Regulatory Hurdles bearish
"PYUSD unavailable to NY users until NYDFS approval"
– CoinMarketCap Community Post (2025-07-28 14:00 UTC)
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What this means: Without approval from New York’s financial regulator, PYUSD can’t be used by residents in New York—a major financial center with over 19 million people. This limits PYUSD’s growth potential in the short term, despite its expansion elsewhere in the U.S.
Conclusion
Overall, sentiment around PYUSD is cautiously optimistic. Technical developments point to increasing usefulness, but regulatory hurdles and strong competition remain challenges. PYUSD’s market cap has grown to $1.34 billion (up 117% since July), but it still trails far behind USDT’s $176 billion dominance. With PayPal’s 434 million users, PYUSD has potential, but it needs to overcome established stablecoins. For the latest on adoption trends, monitor weekly on-chain transfers using Nansen dashboards.
What is the latest news about PYUSD?
PayPal USD (PYUSD) is rapidly growing its network as it competes to become a leading stablecoin. Here’s the latest update:
- Liquidity Boost with Spark (September 25, 2025) – PayPal teamed up with Spark to increase on-chain liquidity from $100 million to $1 billion.
- Expanding to More Blockchains (September 20, 2025) – PYUSD launched on 9 additional blockchains using LayerZero technology to reach more users.
- Supply Doubles to $2.5 Billion (October 3, 2025) – The amount of PYUSD in circulation grew by 113% in one month due to higher demand.
In-Depth Look
1. Liquidity Boost with Spark (September 25, 2025)
What happened: PayPal partnered with Spark, a decentralized finance (DeFi) platform, to add PYUSD to SparkLend. This uses Spark’s large $8 billion stablecoin reserve pool to increase PYUSD deposits from $100 million to $1 billion. Unlike traditional methods that rely on market makers, this approach offers steady and predictable liquidity.
Why it matters: This partnership makes PYUSD more attractive for DeFi users and institutions by providing easy access to liquidity at a lower cost. It strengthens PYUSD’s role as a reliable payment option within decentralized finance. (Yahoo Finance)
2. Expanding to More Blockchains (September 20, 2025)
What happened: PYUSD is now available on nine new blockchains including Abstract, Aptos, Avalanche, Sei, Stable, and Tron, thanks to LayerZero’s cross-chain technology. It already operates on Ethereum, Solana, and Stellar, and these versions now work together smoothly through PYUSD0, a version that doesn’t require special permissions.
Why it matters: While this doesn’t directly affect PYUSD’s price (since it’s a stablecoin), it greatly improves its usefulness. Cross-chain compatibility makes it easier for PayPal’s 434 million users across PayPal and Venmo to use PYUSD anywhere, helping it compete with other popular stablecoins like USDT and USDC. (Bitcoinist)
3. Supply Doubles to $2.5 Billion (October 3, 2025)
What happened: The total PYUSD in circulation reached $2.54 billion, more than doubling in just one month. Most of this supply is on Ethereum ($1.84 billion) and Solana ($624 million). Daily transfers hit $2 billion, driven by more merchants accepting PYUSD and incentives for users to hold it.
Why it matters: This rapid growth shows strong network effects. Although PYUSD is still smaller than USDT ($176 billion) and USDC ($75.9 billion), its fast expansion highlights PayPal’s advantage in reaching users and its compliance with regulations under the GENIUS Act. (Crypto.News)
Conclusion
PYUSD is growing quickly through smart partnerships in DeFi, expanding across multiple blockchains, and encouraging merchants to adopt it. With supply increasing faster than smaller competitors and supportive regulations, PYUSD is positioning itself as a key link between traditional finance and cryptocurrency. The big question: Can PayPal use its 435 million users to catch up to USDT and USDC in 2026?
What is expected in the development of PYUSD?
PayPal USD’s (PYUSD) upcoming plans focus on making the coin more useful and easier to use across different platforms.
- Spark Protocol Integration (October 2025) – Launch of Savings V2 and a mobile app to help PYUSD holders earn interest.
- Sei Network Giga Upgrade (Q4 2025) – A major speed boost aiming for 200,000 transactions per second to make PYUSD faster.
- Emerging Market Expansion (2025–2026) – Partnering with Stablechain to offer low-cost money transfers in regions like Africa and Southeast Asia.
Deep Dive
1. Spark Protocol Integration (October 2025)
What’s happening: Spark Protocol will introduce Savings V2, allowing PYUSD holders to earn interest by pooling their coins with others, including assets like USDT and ETH. They’re also launching a mobile app to make it easier for everyday users to access these financial products.
Why it matters: This could attract big investors and make PYUSD more popular with regular users by offering simple ways to earn money on their holdings (Spark Protocol).
2. Sei Network Giga Upgrade (Q4 2025)
What’s happening: The Sei Network plans a big upgrade to handle up to 200,000 transactions per second and confirm transactions in under 400 milliseconds. This will make PYUSD transactions faster and more efficient, especially for small payments and international transfers.
Why it matters: Faster transactions could make PYUSD more attractive for everyday use, but its success depends on how much the Sei Network grows (Yummmycrypotato).
3. Emerging Market Expansion (2025–2026)
What’s happening: PayPal Ventures is investing in Stablechain to bring PYUSD to emerging markets like Africa and Southeast Asia. They will use LayerZero technology to connect different blockchains and make it easy to convert PYUSD to local currencies.
Why it matters: This move could lower the cost of sending money internationally, benefiting people who rely on remittances. However, regulatory challenges in these regions could pose risks (Blockworks).
Conclusion
PYUSD’s roadmap focuses on improving speed, integrating with decentralized finance (DeFi), and expanding global access. While these upgrades could strengthen PYUSD’s role in payments, it still faces strong competition from established stablecoins like USDC and USDT. The key question is whether PYUSD’s compliance with regulations and PayPal’s global reach will help it succeed in emerging markets.
What updates are there in the PYUSD code base?
PYUSD’s technology is advancing with a strong focus on working smoothly across multiple blockchains and enhancing security.
- Omnichain Expansion (September 18, 2025) – Launched PYUSD0 using LayerZero to enable easy transfers across different blockchains.
- Security Audits (2025) – Version 2 contracts were reviewed by Zellic and Trail of Bits for safety.
- Delegate Transfers (2025) – Added gasless transactions using EIP-3009 and EIP-2612 standards.
Deep Dive
1. Omnichain Expansion (September 18, 2025)
What happened: PYUSD introduced PYUSD0, a new type of token that works across nine different blockchains like Tron and Avalanche, thanks to LayerZero’s Stargate Hydra technology.
This upgrade uses the Omnichain Fungible Token (OFT) standard, which means PYUSD can move between blockchains without breaking up liquidity. Older bridged tokens (like BYUSD on Berachain) were switched over to PYUSD0, creating a unified system.
Why it matters: This is a positive development for PYUSD because it increases its usefulness across decentralized finance (DeFi) platforms, makes cross-chain transfers smoother, and strengthens PayPal’s position as a leader in compliant and interoperable stablecoins. (Source)
2. Security Audits (2025)
What happened: PYUSD’s version 2 smart contracts were audited by security firms Zellic and Trail of Bits. The focus was on controlling supply and freezing assets when necessary.
The audits confirmed improvements to the SupplyControl contract, which handles minting and burning tokens with limits, and the PaxosTokenV2 contract. No major security issues were found.
Why it matters: This is a neutral update—it’s part of regular maintenance to keep the system secure. However, it does boost confidence among institutions that PYUSD’s technology is reliable and safe. (Source)
3. Delegate Transfers (2025)
What happened: PYUSD’s code was updated to support EIP-3009 and EIP-2612 standards, which allow users to make transactions without paying Ethereum gas fees upfront by signing approvals off-chain.
Users can now authorize batch transfers or recurring payments with signed messages, making transactions more efficient and less costly. The transferWithAuthorizationBatch function helps process multiple transfers at once.
Why it matters: This is a positive step for PYUSD because it lowers the cost and complexity for everyday users and merchants, supporting PayPal’s goal of easy, frictionless digital payments. (Source)
Conclusion
PYUSD’s technology is evolving to improve cross-chain compatibility, strengthen security, and simplify transactions for users. These updates support PayPal’s vision of connecting traditional finance with the emerging Web3 ecosystem. It will be interesting to see how PYUSD’s growing presence across multiple blockchains affects its competition with other stablecoins like USDC and USDT in decentralized finance liquidity pools.