PayPal Launches PYUSD Stablecoin
Payment giant PayPal made headlines on August 7th by unveiling its dollar-pegged stablecoin PYUSD, issued by Paxos Trust Company. The stablecoin is backed by:
100%+ reserve assets including:
- Cash equivalents
- U.S. Treasury securities
- Dollar deposits
Jose Fernandezda Ponte, VP of Blockchain at PayPal, emphasized PYUSD's mission to bridge fiat currencies and Web3 ecosystems. The key adoption strategy involves listing on major exchanges, with Kraken being the first platform to support deposits, withdrawals, and trading.
Coinbase Joins PYUSD Adoption Wave
Following Kraken's lead, U.S. cryptocurrency exchange Coinbase announced PYUSD integration on August 30th with important notes:
🛑 Network Limitation: Only Ethereum network transfers are supported currently
⏳ Trading Timeline: PYUSD-USD pairs will launch after liquidity conditions are met (target: August 31, 9 AM PT)
This milestone marks PYUSD's expansion across two major exchanges, advancing PayPal's goal to capture U.S. market share in stablecoins.
👉 Discover how PYUSD compares to other stablecoins
PYUSD Growth vs Market Leaders
Supply Growth Analysis
- 60% surge in 22 days (2.69M → 4.33M PYUSD)
- 364 holder addresses with 1,530 transactions
Market Share Comparison
| Metric | PYUSD | USDT | Ratio |
|---|---|---|---|
| Market Cap | $4.33M | $827.9B | 0.054% |
| Adoption Stage | Emerging | Market Leader | N/A |
While PayPal benefits from Web2 brand recognition and U.S. market infrastructure, PYUSD remains microscopic compared to Tether's dominance. Industry analysts suggest PYUSD needs:
- More exchange integrations
- DeFi protocol partnerships
- Cross-chain functionality
Frequently Asked Questions
Why did PayPal create PYUSD?
PayPal aims to streamline crypto-fiat conversions and establish a Web2-Web3 payment bridge, leveraging its 430M+ active accounts.
When will PYUSD trading begin on Coinbase?
Trading starts after liquidity thresholds are met, expected August 31 (9 AM PT) with phased rollouts.
How does PYUSD's reserve differ from USDT?
Both claim 100%+ reserves, but PYUSD discloses more frequent attestations while USDT has wider adoption.
👉 Explore stablecoin investment strategies
The Long Road Ahead
PYUSD's rapid initial growth demonstrates PayPal's execution capability, but catching up to USDT's $827.9B market cap requires:
- Multi-chain expansion beyond Ethereum
- Merchant payment integrations
- Yield-bearing features in DeFi
The stablecoin war intensifies as traditional finance giants enter the arena. Will PYUSD's regulated approach outpace decentralized alternatives? Only time—and adoption—will tell.