What could affect the price of PYUSD?

PYUSD’s $1 value is being tested by how widely it’s used, government rules, and its role in decentralized finance (DeFi).

1. Multi-chain expansion – Being available on more blockchains could make PYUSD more useful.
2. Regulatory scrutiny – New U.S. and EU laws might limit how much interest users can earn.
3. DeFi adoption – Kamino’s $500 million in PYUSD deposits shows growing demand for liquidity.

Deep Dive

1. Multi-Chain Expansion (Positive Outlook)

Overview: PYUSD is now supported on several blockchains including Ethereum, Solana, Arbitrum, Stellar, and TRON. Thanks to LayerZero technology, users can move PYUSD across these blockchains easily. For example, TRON has a large user base of $332 million, which helps improve payments and DeFi connections.

What this means: Supporting more blockchains makes PYUSD more useful for international payments and as collateral in DeFi apps, which can increase demand. But if too much PYUSD is created without enough users, it could put pressure on keeping its $1 value stable.

2. Regulatory Risks (Challenges Ahead)

Overview: The U.S. GENIUS Act, starting in 2026, will ban paying interest on stablecoins like PYUSD. This affects platforms like Coinbase and PayPal that currently offer rewards. The UK and EU also have rules (MiCA) requiring audits and transparency for stablecoins.

What this means: If PayPal’s 3.7% PYUSD rewards don’t comply with these laws, fewer people might want to use it. On the other hand, clear regulations could help PYUSD gain trust compared to competitors like USDT, which is facing restrictions in the EU (Cointelegraph).

3. DeFi Liquidity Growth (Mixed Effects)

Overview: PYUSD deposits on Kamino Finance have grown to $500 million, with borrowing rates as low as 1.9% APY. This reflects strong activity, similar to Ethereum’s $18.6 billion PYUSD transfer volume in Q3 2025 (AMBCrypto).

What this means: Increased use in DeFi helps keep demand steady but also introduces risks from smart contracts. If a lending platform fails, it could cause short-term price swings.

Conclusion

PYUSD’s ability to stay pegged to $1 depends on balancing government rules with growing use in payments and DeFi. Expanding to multiple blockchains and partnerships with companies like Mastercard are positive signs. However, limits on rewards and technical issues like Paxos’ $300 trillion minting mistake remain concerns.

Watch: Will PayPal keep offering 3.7% PYUSD rewards under the GENIUS Act, or will compliance costs reduce its appeal?

What are people saying about PYUSD?

PYUSD is making waves as a stablecoin with some big moves—and a major typo worth $300 trillion. Here’s what’s happening:

1. Kamino boosts PYUSD liquidity – DeFi borrowing rates hit all-time lows 🚀
2. Expanding across multiple blockchains – Now live on 9+ networks, including Tron and Arbitrum 🌐
3. $300 trillion minting error – Paxos’ mistake sparks questions about trust and security 🔥

In-Depth Look

1. Kamino’s PYUSD liquidity boost is a positive sign

Kamino recently reported over $500 million in PYUSD deposits and $200 million available to borrow at less than 5% annual interest. They even offered loans at just 1.9% APY, the lowest stablecoin borrowing rates on Solana so far.
What this means: This shows strong demand for PYUSD in decentralized finance (DeFi). Lower borrowing costs encourage more users to take leveraged positions while keeping PYUSD’s value stable. This is a good sign for PYUSD’s adoption in the DeFi space.
See original post by Kamino

2. PYUSD expands to multiple blockchains, improving usability

PYUSD is now available on over nine blockchain networks, including popular ones like Tron and Arbitrum. This expansion allows PayPal and Venmo’s 434 million users to send and receive payments faster on networks like Stellar, Aptos, and Avalanche through LayerZero technology.
What this means: Making PYUSD available across many blockchains reduces friction for users and increases its usefulness. However, established stablecoins like USDT and USDC still dominate the market, so PYUSD faces stiff competition.
See original post by pukerrainbrow

3. TRON integration brings both opportunities and concerns

PYUSD’s launch on TRON via LayerZero’s OFT protocol marks a milestone, connecting real-world payments with decentralized finance infrastructure. TRON handles over 40% of global stablecoin transactions, so this integration could boost PYUSD’s transaction volume significantly.
What this means: While this is positive for PYUSD’s usage, some worry about centralization since Paxos, the issuer, gains more control. This has led to mixed feelings among crypto enthusiasts who prioritize decentralization.
See original post by MR_0FFICIALL

4. The $300 trillion minting error raises red flags

Paxos accidentally minted 300 trillion PYUSD tokens but quickly burned them within 22 minutes. This glitch caused a temporary freeze of PYUSD markets on platforms like Aave as a safety measure.
What this means: This incident highlights risks tied to centralized stablecoin issuers. Although the mistake was fixed fast and didn’t cause market chaos, it shakes confidence in Paxos’ operational reliability.
See original post by 0xRexster

Conclusion

The outlook for PYUSD is mixed. On one hand, its growing presence across multiple blockchains and strong DeFi demand are positive signs. On the other, Paxos’ operational slip-up raises concerns about trust and centralization. PYUSD is positioning itself as PayPal’s bridge to Web3, now active on 9+ networks. Keep an eye on its circulating supply—currently $3.1 billion. If it grows beyond $5 billion by the end of 2025 despite the hiccup, it could show that institutional confidence outweighs these challenges.

What is the latest news about PYUSD?

PayPal USD (PYUSD) is benefiting from Ethereum’s growing use of tokenized assets while adapting to new regulations. Here’s the latest update:

1. Ethereum Tokenization Growth (Nov 10, 2025) – PYUSD transfers reached $18.6 billion, driven by increased use from institutions.
2. UK Regulatory Developments (Nov 7, 2025) – The UK is working on stablecoin rules for 2026, involving companies like Circle and PayPal.
3. Traditional Finance Consortium (Nov 7, 2025) – Major banks are exploring digital money backed by reserves, integrating PYUSD with Mastercard’s network.

Deep Dive

1. Ethereum Tokenization Growth (Nov 10, 2025)

Overview:
In the third quarter of 2025, PYUSD transfers on the Ethereum blockchain jumped 260% compared to last year, reaching $18.6 billion. This growth is largely due to PayPal’s new payment features on Ethereum and partnerships with big financial firms like BlackRock and Fidelity. Additionally, the total value of tokenized funds on Ethereum has increased 20 times since January 2024.

What this means:
This shows strong demand for PYUSD as a way to settle traditional financial assets on Ethereum. However, Ethereum’s price remains steady below $3,500, with limited buying interest and some capital leaving the market. Trading data indicates that speculative activity is low right now. (AMBCrypto)

2. UK Regulatory Developments (Nov 7, 2025)

Overview:
The UK government started a consultation on stablecoin regulations on November 10, 2025, aiming to establish rules by 2026 that align with the U.S. GENIUS Act. Under Bank of England guidelines, PYUSD issuers will need to back their coins with government bonds.

What this means:
This regulatory effort could improve PYUSD’s reputation among institutions, although approval from New York’s financial regulator is still pending for U.S. users. The issuance of stablecoins in the UK has grown 40% year-over-year, showing strong market interest. (Yahoo Finance)

3. Traditional Finance Consortium (Nov 7, 2025)

Overview:
Goldman Sachs, Deutsche Bank, and Citi have formed a group to explore digital currencies backed by reserves on public blockchains. PYUSD is now part of Mastercard’s Global Dollar Network, which supports cross-border payments.

What this means:
This is a positive sign for PYUSD’s use in international transactions. Visa and BNY Mellon already use PYUSD for settlements, but competition is increasing as companies like Walmart and Amazon develop their own stablecoins. (CoinTelegraph)

Conclusion

PYUSD is making significant progress in tokenized finance and partnerships with traditional financial institutions. However, regulatory challenges and Ethereum’s stable price could slow growth in the short term. The next phase of PYUSD’s expansion may depend on upcoming Ethereum network upgrades.

What is expected in the development of PYUSD?

PayPal USD’s (PYUSD) roadmap highlights key upgrades focused on improving technology, expanding across multiple blockchains, and increasing adoption by institutions.

1. Confidential Transfers (2026) – Adds privacy features for merchants’ payments.
2. Sei Network Integration (Q4 2025) – Enables ultra-fast transaction processing.
3. Global Rewards Program (2026) – Rewards users and merchants for using PYUSD.
4. Cross-Chain Settlement Hub (2026) – Connects traditional finance and decentralized finance liquidity.
5. Central Bank Pilots (2026) – Tests compatibility with central bank digital currencies (CBDCs).

Deep Dive

1. Confidential Transfers (2026)

Overview: PYUSD plans to introduce confidential transfers on the Solana blockchain. This means merchants can hide payment amounts from the public while still complying with regulatory requirements. Think of it like a business keeping its sales figures private, similar to how traditional stores operate.

What this means:

• Positive: Makes PYUSD more attractive for businesses and wealthy clients who value privacy.
• Potential challenge: Regulators might delay this feature if they worry about transparency.

2. Sei Network Integration (Q4 2025)

Overview: PYUSD will connect with Sei Network’s upcoming Giga Upgrade, which aims to handle 200,000 transactions per second (TPS) with confirmation times under 400 milliseconds. This was confirmed in Sei’s announcement. This upgrade targets fast, small payments like those in gaming, streaming, or Internet of Things (IoT) devices.

What this means:

• Positive: Positions PYUSD as a go-to stablecoin for fast, everyday microtransactions.
• Neutral: Success depends on Sei Network’s ability to maintain reliability at high speeds.

3. Global Rewards Program (2026)

Overview: PayPal is developing a rewards program to encourage merchants and users to hold PYUSD. Rewards might be linked to how much PYUSD is used in transactions. A pilot program in July 2025 showed a 12% increase in PYUSD adoption.

What this means:

• Positive: Could increase demand for PYUSD by offering incentives similar to interest on savings.
• Potential challenge: Regulators might limit rewards that resemble interest payments.

4. Cross-Chain Settlement Hub (2026)

Overview: PayPal is building a hub using LayerZero technology to connect PYUSD liquidity across more than 15 blockchains, including Ethereum, Solana, and Tron. This will allow smooth transfers between traditional financial institutions and decentralized finance (DeFi) platforms.

What this means:

• Positive: Reduces fragmentation, making PYUSD a preferred stablecoin for large-scale trading and portfolio management.
• Potential challenge: Cross-chain bridges can have security risks that might affect user confidence.

5. Central Bank Pilots (2026)

Overview: PayPal is working with the Bank of England and the European Central Bank (ECB) to test PYUSD as a bridge currency for central bank digital currencies (CBDCs), according to recent regulatory filings.

What this means:

• Positive: Support from central banks could boost PYUSD’s credibility and use in international trade.
• Neutral: Progress depends on regulatory alignment in Europe and the U.S.

Conclusion

PYUSD’s roadmap combines technical improvements like privacy and speed with broader ecosystem growth through cross-chain support and rewards. It’s evolving from a PayPal-specific stablecoin into a multi-chain platform with growing institutional and regulatory support. The big question: Can PYUSD’s focus on compliance help it outpace competitors in the $300 billion stablecoin market?

What updates are there in the PYUSD code base?

PayPal USD (PYUSD) is expanding its reach across multiple blockchains and improving its use in decentralized finance (DeFi) through recent updates.

1. Cross-Chain Expansion with LayerZero (September 18, 2025) – PYUSD0 launched on TRON, Avalanche, and other networks to enable smooth transfers between blockchains.
2. Integration with Arbitrum (July 16, 2025) – PYUSD became available on Ethereum’s Layer-2 network for faster and cheaper transactions.
3. Lower Borrowing Rates on Kamino (November 10, 2025) – PYUSD borrowing costs dropped below 5% annual percentage yield (APY) on Solana, making it more attractive for DeFi users.

Deep Dive

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

What happened: PYUSD introduced PYUSD0, a new version that works across multiple blockchains without needing permission. Using LayerZero’s technology, it allows users to transfer PYUSD smoothly between networks like TRON, Avalanche, and Sei.

Before this, PYUSD tokens on different blockchains were separate, causing liquidity to be split up. Now, all bridged tokens, such as BYUSD on Berachain, have been combined into PYUSD0, keeping their value consistent at 1:1.

Why it matters: This update makes PYUSD more accessible on popular networks like TRON, which handles about $21 trillion in transfers. It supports PayPal’s goal of making payments faster and cheaper worldwide. Users can expect quicker transactions with lower fees. (Source)

2. Integration with Arbitrum (July 16, 2025)

What happened: PYUSD was added to Arbitrum, a Layer-2 solution on Ethereum. This helps reduce the high fees and slow transaction times often seen on Ethereum’s main network.

There are limits in place: users can buy up to $100,000 worth of PYUSD weekly and send up to $25,000 per transaction on Arbitrum. Arbitrum’s ability to handle more transactions supports PYUSD’s use in DeFi, which involves complex financial products worth $1.39 trillion.

Why it matters: This move improves PYUSD’s usefulness but faces competition from other stablecoins already established on Layer-2 networks. Traders benefit from cheaper access to Ethereum-based DeFi, and PayPal is aiming to attract institutional users by ensuring compliance with regulations. (Source)

3. Lower Borrowing Rates on Kamino (November 10, 2025)

What happened: Kamino Finance adjusted borrowing rates for PYUSD on the Solana blockchain, offering $200 million in liquidity at rates below 5% APY.

PYUSD is now the second-largest stablecoin on Kamino, with $500 million in deposits. Borrowers are paying an average of just 1.9% APY, making it cheaper to borrow PYUSD for DeFi activities.

Why it matters: Lower borrowing costs encourage more users to leverage PYUSD in Solana’s DeFi ecosystem, increasing demand. Liquidity providers also benefit from more efficient use of their capital. (Source)

Conclusion

The recent updates to PYUSD focus on making it work smoothly across different blockchains (LayerZero), improving transaction speed and cost (Arbitrum), and enhancing borrowing options in DeFi (Kamino). These changes show PayPal’s ambition to compete with major stablecoins like USDT and USDC. With better cross-chain liquidity and strong compliance, PYUSD could become a leading stablecoin bridging traditional finance and decentralized finance.