PayPal (PYPL) said it is expanding access to its dollar-backed stablecoin, to users in 70 markets, expanding the token’s reach beyond the US as it pushes deeper into digital payments.
Consumers in newly supported countries will be able to buy, 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 be able to show how stablecoins can actually be integrated into a distribution network for both consumers and merchants and then provide value and cost savings and immediate speed and settlement,” May Zabaneh, senior vice president and general manager of crypto at PayPal, told CoinDesk in an interview.
“You lower costs, you increase speed, you empower consumers as well as businesses to hold, spend and earn.”
Stablecoins, digital tokens backed by assets such as fiat currency or commodities, have become a core payment and settlement layer in the crypto market, widely used for trading and cross-border transfers. The sector is led by Tether’s USDT with a market cap of around $143 billion, followed by Circle Internet’s (CRCL) USDC at around $78 billion. PYUSD has a market capitalization of about $4 billion.
Tokens have emerged as one of the fastest-growing segments of the digital asset market, with the sector’s total supply rising to hundreds of billions of dollars as demand for dollar-linked digital payments increases.
The growth has attracted traditional financial institutions and payments companies, with firms such as Visa ( V ) and Mastercard ( MA ) exploring stablecoin integrations, while banks and fintechs are testing tokenized deposits and blockchain-based settlement to compete in cross-border payments and digital commerce.
Merchants using PYUSD can access payment proceeds within minutes instead of waiting days for traditional settlement cycles, potentially improving liquidity for cross-border trading.
PayPal introduced PYUSD in the US in 2023. The token is backed by dollar deposits and short-term government bonds and issued by Paxos under US regulatory oversight.
The new markets span regions including Asia-Pacific, Europe and Latin America, with countries such as Singapore, the UK, Peru and Guatemala among those gaining access. PayPal said additional markets will be added in the coming weeks.
Read more: Stablecoin market hits $312 billion as banks, card networks embrace onchain dollars
