PayPal’s PYUSD: The Underdog Stablecoin That Could (or Couldn’t) Take on the Giants!

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  • PayPal has expanded its PYUSD integration, aiming to challenge USDT and USDC in 2025
  • PYUSD is struggling with adoption though, recording just $1.24 billion in February transactions.

In a world where stablecoins are the new black, PayPal is strutting its stuff, announcing plans to expand PYUSD integration across more products in 2025. It’s like watching a toddler try to keep up with a marathon runner—adorable, but you know it’s not going to end well. 🏃‍♂️💨

This bold move positions PayPal as a contender against the heavyweight champions of the stablecoin world: Tether (USDT) and Circle (USDC). It’s like David versus Goliath, except David is armed with a plastic slingshot and Goliath has a tank. 💪

PayPal’s executive weighs in

In an interview with Bloomberg, Michelle Gill, the General Manager of PayPal’s small business and financial services division, shared her thoughts:

“A lot of the payments we’re expecting are going to be cross-border because merchants in the US are seeking to pay vendors and suppliers abroad. The thesis was: Can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?”

Translation: “We’re trying to make it easier for you to send money without the headache of converting currencies. Because who doesn’t love a good headache?” 💊

In a significant step towards broader stablecoin adoption, PayPal is set to integrate PYUSD into its Hyperwallet platform. This means freelancers and contractors can finally get paid without having to resort to bartering their services for a loaf of bread. 🍞

This move follows PayPal’s first successful business transaction using PYUSD in 2024, which is like saying they finally learned how to ride a bike without training wheels. 🎉

Acquired for $400 million in 2018, Hyperwallet will facilitate PYUSD payouts as early as the first half of this year. That’s right, folks—money is about to get a whole lot more digital, and a whole lot less tangible. 💸

What’s more?

Looking ahead, PayPal aims to further enhance its crypto integration by allowing merchants to settle PayPal checkout transactions in digital assets by the end of 2025. Because nothing says “I trust this new currency” like using it to buy a pair of socks online. 🧦

PayPal Chief Executive Officer Alex Chriss chimed in, saying:

“We’ve been talking about blockchains for like a decade now — the concept of these things never becomes real until you actually can start to spend it. And I think that’s what we’re enabling.”

Ah, yes, the age-old adage: “If you can’t spend it, it’s just a fancy idea.” 💡

But let’s not forget, the stablecoin market is a fierce battleground. Tether (USDT) is dodging compliance hurdles like a pro, while Circle’s USDC is riding the memecoin wave like a surfer on a perfect day. 🏄‍♂️

Meanwhile, XRP has decided to crash the party with RLUSD—a stablecoin now live on Ethereum and XRPL, boasting an initial supply of 120 million. Because why not add more chaos to the mix? 🎉

Challenges ahead

Despite PayPal’s enthusiastic push for PYUSD adoption, it faces stiff competition from the big boys, USDT and USDC. According to the latest data from VisaOnChainAnalytics, stablecoin transaction volumes in February 2025 totaled a staggering $615 billion, with USDT leading the pack at $415.61 billion. PYUSD? A modest $1.24 billion. Ouch. 😬

Additionally, PYUSD’s market cap peaked at $1.01 billion in August but has since plummeted below $500 million by December. It’s like watching your favorite stock crash and burn—heartbreaking, yet oddly fascinating. 📉

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2025-02-27 09:15