- PYUSD adoption expands beyond the app, entering defi protocols in both Ethereum and Solana with a wider range of utilities.
- Ondo, Zero Hash, and Morpho support more realistic use cases and unlocking passive yield opportunities.
According to Token Terminal, PayPal's Pyusd Stablecoin supply is approaching a psychological $1 billion worth of $1 billion. It was first launched as a steady digital payment replacement, but now it has expanded even further into the Defi space.
Surges occur not only in the Ethereum network, but also in Solana, which has seen distribution growth of over 170% over the past month. Many thought that Pyusd would only “hang out” in Paypal and Venmo wallets, but now we find it's starting to be used in a wider, more risky ecosystem.
In mid-May, a report from CNF revealed new features in Ondo Finance. This allows for instantaneous conversion between Ousg (tokenized financial assets) and Pyusd. process? There is no fee or time delay. This feature is a type of Express Toll Gate for users who want to access Treasury-based assets at any time using PYUSD.
So, for example, you just click to want to “park the funds” in the middle of the night on an interest-bearing property. You don't have to wait for business hours like traditional banks.
ICYMI: @PayPal's PYUSD has grown on both @ethereum and @solana and is shut down to a billion dollar supply. pic.twitter.com/goab6r4qzt
– Token Terminal 📊 (@tokenterminal) June 8, 2025
Solana becomes Pyusd's second home, and Defi opens a wide door
Interestingly, Ethereum was Pyusd's main home from the start, but Solana is now beginning to compete in terms of distribution. Faster and cheaper transactions as well as for integration with several Defi protocols such as Kamino and Drift.
These two protocols make Pyusd more than just a Stablecoin. It can be rotated, used as collateral, or saved while waiting for daily interest.
Still an ecosystem subject, Zero Hash, a crypto infrastructure provider platform, entered the arena in early March.
They officially added PYUSD to their system. This means that users will be able to use PYUSD for a variety of things. From cross-border payments, overseas remittances, to purchasing other crypto assets via on-ramp services. Overseas, such features are beginning to become popular among remittance companies and payment startups.
Furthermore, last May, Pyusd was also available as collateral for Morpho Blue. The protocol curated by Steakhouse Financial allows users to lock real assets such as BIB01 and WSTET, and earn double the yield from both Crypto and Traditional.
This system, which they call “dual-engine yields,” makes PYUSD even more flexible, especially for investors who want to combine old and new world profits.
It's no longer just a token, it's becoming a complete ecosystem
Another factor that helped Pyusd's growth was the conclusion of SEC's investigation into Stablecoin. Without claims or sanctions, the trust between investors and users was clearly boosted. Not only that, PayPal has begun offering an annual yield of 3.7% to US users who hold PYUSD in their wallets. This yield is paid monthly in PYUSD. This is a type of “interest savings” Web3 version.
From a strategic point of view, it appears that PayPal's move is not just for the show. They can not only create and put Stablecoin in their apps, but also live on a network with high liquidity and active communities.
PYUSD has even crossed the world of electronic wallets to the world of traders, farmers and hardcore Defi users. As it stands, the results are extremely exciting. Supply continues to increase, more protocols accept it, and integration is expanding.
