PayPal Holdings Inc (NASDAQ: PYPL) is expanding its dollar-backed stablecoin to 70 markets, widening access beyond the United States as it deepens its push into digital payments.
The company said on Thursday that the expansion aims to show how stablecoins can operate within a global payments network for both consumers and merchants. Meanwhile, company executives said the model can reduce costs and enable faster settlement for everyday transactions. They also noted that users can hold, spend and potentially earn with the token inside the platform.
Users in newly supported countries can now buy, hold, send and receive PYUSD through their PayPal accounts. Additionally, they can transfer tokens to external crypto wallets or convert balances into local currency on withdrawal. The rollout spans regions across Asia-Pacific, Europe and Latin America, including Singapore, the U.K., Peru and Guatemala.
Stablecoins are digital tokens backed by assets such as fiat currency or commodities and are widely used for trading and transfers. Consequently, they have become a core settlement layer in crypto markets, particularly for cross-border payments. The sector is led by Tether’s USDT with a market capitalization near USD$143 billion, followed by Circle Internet Group’s (NASDAQ: CRCL) USDC at about USD$78 billion. PayPal’s PYUSD currently has a market value around USD$4 billion.
The broader market for dollar-linked tokens has grown into the hundreds of billions of dollars as demand increases. Furthermore, traditional financial firms are moving into the space to compete on speed and cost. Companies such as Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) are exploring stablecoin integrations and blockchain-based settlement systems.
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PayPal’s token is backed by dollar deposits and short-term treasuries
Merchants that accept PYUSD can receive payment proceeds within minutes instead of waiting days under traditional systems. As a result, businesses may see improved liquidity, particularly in cross-border commerce.
“You’re lowering costs, you’re enhancing speed, you’re providing consumers as well as businesses, the ability to hold, spend and earn,” said May Zabaneh, senior vice president and general manager of crypto at PayPal.
PayPal launched PYUSD in the U.S. in 2023. Paxos issues the token under U.S. regulatory oversight and backs it with dollar deposits and short-term Treasuries. Additionally, the company said it plans to add more markets in the coming weeks.
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