PayPal's PYUSD stablecoin market cap exceeds $1 billion

PayPal's PYUSD stablecoin market cap exceeds $1 billion

Stablecoin PYUSD, launched by PayPal in 2023, now has a market capitalization of over $1 billion. This digital asset, which is pegged to the US dollar at a 1:1 ratio, is provided by Paxos Trust Company, a regulated cryptocurrency custodian in the United States.

PYUSD competes with established stablecoins like Circle's USDC and Tether's USDT. According to Dan Schulman, president and CEO of PayPal, a stable and digitally native instrument that can be easily linked to fiat currencies is important for the transition to digital currencies.

The Ethereum-compatible PYUSD token (ERC-20) is the only stablecoin available on the PayPal platform. It is designed for a wide community of developers, wallets and web applications. PayPal plans to increase the availability of PYUSD by working with partners such as Anchorage Digital and Crypto.com.

While PYUSD has seen success, it still lags behind the dominant stablecoins.

According to CoinMarketCap, USDT and USDC have a market capitalization of nearly $118 billion and $35 billion, respectively.