Main highlights
- Market cap of PayPal’s stablecoin PYUSD soars 216% to over $3.82 billion
- Amid the boom in the stablecoin market, PayPal USD has become widely popular thanks to its unique yield program
PayPal's stablecoin, PYUSD, has experienced impressive growth since its launch, with its market capitalization increasing by $3.82 billion, making it the fifth largest stablecoin, according to the latest data.
As of September, the PYUSD stablecoin had a market capitalization of just $1.2 billion, according to DefiLlama. The increasing supply of stablecoins is part of an ongoing boom in the stablecoin market.
PYUSD grows amid stablecoin boom
In 2025, PayPal USD or PYUSD has grown from a newly launched project to a billion dollar digital payment system. Published by Paxos and backed by financial giant PayPal.
From September to November, PYUSD surged 216% on the growth chart. One of the biggest reasons for its growth is its large-scale partnerships. The stablecoin's 24-hour trading volume was approximately $68.53 million.
Over the past few months, PYUSD has been deployed across numerous blockchain ecosystems. One of the biggest developments was its launch on the Arbitrum network in July, reducing transaction costs and providing access to popular decentralized financial services.
Following this, PayPal USD also underwent a multi-chain expansion in September, expanding its reach to nine additional networks including Avalanche, Tron, and SEI through cross-chain technology.
Separately, a partnership with DeFi platform Spark injected $1 billion in new liquidity. Our partnership with Coinbase opens the door to free trade, and our integration with Hyperwallet streamlines billions in cross-border business payments.
The stablecoin is also integrated with artificial intelligence for next-generation commerce through an agreement with Google Cloud.
PayPal also adopted a new strategy to drive adoption through attractive yield programs. Exchanges and lending platforms offer users who deposit PYUSD a high annual yield of 18%. PayPal's unique “Earn” program gives you 5.5% back, and features like Venmo's zero-fee peer-to-peer transfers make Venmo a practical tool for everyday use.
Stablecoin market surges due to regulatory clarification
Since US President Donald Trump signed the GENIUS Act into law in July 2025, the stablecoin market has experienced explosive growth due to institutional trust in the stablecoin market.
This major US legislation creates a comprehensive federal framework for payment stablecoins, finally ending years of regulatory ambiguity.
The GENIUS Act provides the clarity needed for large financial institutions to participate by strictly enforcing reserve requirements backed one-to-one with safe assets such as U.S. dollars and Treasury securities.
After the law passed, the market capitalization of all stablecoins soared from $160 billion in July to more than $300 billion by December.
A key provision of the GENIUS Act allows regulated banking institutions to issue stablecoins. This paved the way for many large banks to launch their own USD-pegged stablecoins. Major banks and financial institutions are now preparing to become issuers of the next generation of digital dollars, aiming to capture a share of the multi-trillion dollar cross-border payments market.
JPMorgan Chase recently announced the launch of JPM Coin, a stablecoin pegged to the US dollar.
“The next evolution of digital money is here, and we are proud to partner with JPMorgan's Kinexys to issue deposit tokens at Base,” Lauren Abendschein, vice president of institutional sales at Coinbase, said in a press release. We built Base to be a fast, cheap, and secure public blockchain that can improve mobility. Coinbase is a long-time institutional customer of JPMorgan, and the ability to use JPM Coin on Base will help bring institutional capital into the global on-chain economy.”
Similarly, Société Générale's USD CoinVertible, Zelle's peer-to-peer stablecoin initiative backed by a consortium of seven major US banks, and Fiserv's FIUSD for corporate payments have also garnered a lot of attention.
.@Solana is the fastest chain in the stablecoin economy. And with Eco, getting there is just as quick and seamless.
Eco runs on Solana, connecting its $15 billion+ stablecoin ecosystem to the broader multi-chain economy at the speeds we demand and deserve. https://t.co/iWhkmz5Nej
— Eco (@eco) December 9, 2025
Eco announces integration with Solana blockchain to unite $15 billion stablecoin ecosystem. “Eco is a neutral infrastructure built for stablecoins, powering real-time stablecoin flows between chains with on-demand liquidity. After launching on Ethereum and leading Ethereum L2, Eco has now expanded to Solana, with more chains to come. “Eco landed at the highest velocity location,” said an official statement.
