PayPal (PYPL) said it was expanding access to its dollar-backed stablecoin, to users in 70 markets, extending the token’s reach beyond the United States while deepening digital payments.
Consumers in newly supported countries will be able to purchase, hold, send and receive PYUSD directly through their PayPal accounts, with the option to transfer the token to third-party crypto wallets or convert it to local currency when withdrawing funds.
The launch is “a really powerful way to show how stablecoins can actually be integrated into a distribution network for consumers and merchants and then provide value and savings as well as instant speed and settlement,” said May Zabaneh, senior vice president and general manager of crypto at PayPal, in an interview with CoinDesk.
“You reduce costs, you increase speed, you provide consumers as well as businesses with the ability to hold, spend and earn.”
Stablecoins, digital tokens backed by assets such as fiat currency or commodities, have become a critical payment and settlement layer in the crypto market, widely used for cross-border trade and transfers. The sector is dominated by Tether’s USDT with a market capitalization of around $143 billion, followed by Circle Internet’s USDC (CRCL) with around $78 billion. PYUSD has a market capitalization of approximately $4 billion.
Tokens have become one of the fastest-growing segments of the digital asset market, with the industry’s total supply reaching hundreds of billions of dollars as demand for dollar-linked digital payments increases.
The growth has attracted traditional financial institutions and payments companies, with companies such as Visa (V) and Mastercard (MA) exploring stablecoin integrations, while banks and fintechs are testing tokenized deposits and blockchain-based settlements to compete in cross-border payments and digital commerce.
Merchants using PYUSD can access payments proceeds in minutes rather than waiting days for traditional settlement cycles, potentially improving the liquidity of cross-border trade.
PayPal introduced PYUSD in the United States in 2023. The token is backed by dollar deposits and short-term Treasury bills and issued by Paxos under US regulatory oversight.
The new markets span regions such as Asia Pacific, Europe and Latin America, with countries such as Singapore, the UK, Peru and Guatemala among those who will gain access. PayPal said additional marketplaces would be added in the coming weeks.
Learn more: Stablecoin Market Hits $312 Billion as Banks, Card Networks Adopt On-Chain Dollars
