The supply of PayPal’s stablecoin, PYUSD, on Solana now stands at 377 million, while on Ethereum it is “only” 356 million.
PayPal Stablecoin
PayPal’s US dollar-pegged stablecoin launched on Ethereum in August 2023, thanks to a partnership with Paxos. Following its launch, the supply of PYUSD reached 230 million units by the end of 2023. Since then, the total supply has more than tripled to over 733 million (worth $733 million).
The project did not end its expansion on Ethereum, however. The stablecoin was introduced to the Solana network in May of this year. At that time, Solana-based decentralized exchanges such as Jupiter and Orca added PYUSD to their pools, which may have contributed to the growth of the stablecoin’s use on the network.
PayPal’s stablecoin market cap of $733 million makes it the fourth-largest stablecoin after tether (USDT), USDC Circle, and First Digital (FUSD). According to data from The Block, USDT and USDC have market caps of $120 billion and $36 billion, respectively.
How does PayPal stablecoin work?
PayPal stablecoin is backed by USD deposits, cash equivalents, and short-term US Treasuries. The token is exchanged 1:1 to USD.
PayPal has an interesting idea for its project. On March 4, the company announced that its American customers can make international transfers using the stablecoin PYUSD. This involves using the token as part of the Xoom cross-border payment service. With its help, PYUSD can be converted to USD. In this way, it is possible to send monetary value to the recipient. Such transactions are carried out between about 160 countries. Interestingly, PayPal does not charge any transaction fees for such a transfer.
The importance of stablecoins on the market will probably grow. They show the actual use of blockchain technology in payments and the economy in general. They are especially important for residents of countries that have backward payment and financial systems and where online banking is not developed. PayPal understands this very well and is probably developing its project from there.
