PayPal (PYPL) says it is expanding access to its U.S. dollar-backed stablecoin, available to users in 70 markets, the token’s reach has expanded beyond the United States as it deepens its push into digital payments.
Consumers in the newly supported countries will be able to buy, hold, send and receive PYUSD directly through their PayPal accounts, with the option to transfer the tokens to a third-party crypto wallet or convert them to local currency when withdrawing funds.
May Zabaneh, senior vice president and general manager of cryptocurrency at PayPal, said in an interview with CoinDesk that the launch is “a really powerful way to show how stablecoins can really integrate into the distribution network of consumers and merchants and then provide value and cost savings and instant speed and settlement.”
“You’re lowering costs, you’re increasing velocity, you’re giving consumers and businesses the ability to hold, spend and make money.”
Stablecoins are digital tokens backed by assets such as fiat currencies or commodities. They have become the core payment and settlement layer of the cryptocurrency market and are widely used for transactions and cross-border transfers. The industry is led by Tether’s USDT, with a market capitalization of approximately $143 billion, followed by Circle Internet’s (CRCL) USDC, with a market capitalization of approximately $78 billion. PYUSD has a market capitalization of approximately $4 billion.
The tokens have become one of the fastest-growing segments of the digital asset market, with the industry’s total supply climbing into the hundreds of billions of dollars as demand for U.S. dollar-pegged digital payments increases.
This growth has attracted traditional financial institutions and payments companies, with companies such as Visa (V) and Mastercard (MA) exploring stablecoin integration, while banks and fintech companies are testing tokenized deposits and blockchain-based settlements to compete in cross-border payments and digital commerce.
Merchants using PYUSD can receive payment benefits in minutes rather than waiting days for traditional settlement cycles, potentially increasing liquidity for cross-border commerce.
PayPal launched PYUSD in the United States in 2023. The token is backed by U.S. dollar deposits and short-term Treasury bills and is issued by Paxos under U.S. regulatory oversight.
The new markets span Asia Pacific, Europe and Latin America and include countries such as Singapore, the UK, Peru and Guatemala. PayPal says it will add more markets in the coming weeks.
Read more: As banks and card networks embrace on-chain dollars, the size of the stablecoin market reaches $312 billion
