PayPal’s stablecoin is beginning to show signs of serious adoption.
What’s happening:
- PayPal (NASDAQ: PYPL) has been experiencing significant growth in the adoption of their United States dollar backed stablecoin PYUSD
By the numbers:
- In the last month, PYUSD has seen growth of approximately 70%
- The market capitalization of PYUSD now sits at roughly $290M USD
Why it matters:
- PayPal made waves in the crypto ecosystem when they announced they would launch a stablecoin, becoming the first publicly traded payments company to ever do so
- PayPal has also integrated PYUSD as a payment option, allowing users who hold the stablecoin to be able to seamlessly purchase items without needing to first convert it back to fiat
Going deeper:
- Aave, one of the most important protocols in decentralized finance, has just recently approved a community vote to support PYUSD and establish a liquidity pool to be able to allow individuals to exchange PYUSD for other digital assets
- PYUSD is already integrated with other notable decentralized finance protocol Curve, which has significantly expanded overall liquidity
Yes, but:
- While PYUSD is showing signs of adoption, PayPal is still nowhere close to stablecoin leaders such as Tether and USDC who boast market capitalizations in the tens of billions
- Currently PYUSD is still only available to residents of the United States who have a PayPal account, which has limited global adoption
