PayPal (PYPL) said it is expanding access to its dollar-backed stablecoin. to users in 70 markets, extending the token’s reach beyond the US as it moves into digital payments.
Consumers in the 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 be able to show how stablecoins can really be integrated into a distribution network for both consumers and merchants and then provide value and cost savings and instant speed and settlement,” May Zabaneh, senior vice president and general manager of crypto at PayPal, told CoinDesk in an interview.
“You’re reducing costs, you’re improving speed, you’re giving both consumers and businesses the ability to hold, spend and earn.”
Stablecoins, digital tokens backed by assets such as fiat currency or commodities, have become a central payment and settlement layer in the cryptocurrency market, widely used for cross-border trading and transfers. The sector is led by Tether’s USDT with a market capitalization of around $143 billion, followed by Circle Internet’s USDC (CRCL) with approximately $78 billion. PYUSD has a market capitalization of around $4 billion.
Tokens have become one of the fastest-growing segments of the digital asset market, with the sector’s total supply running into hundreds of billions of dollars as demand for dollar-pegged digital payments increases.
The growth has attracted financial institutions and traditional payments companies, with companies such as Visa (V) and Mastercard (MA) exploring stablecoin integrations, while banks and fintechs test tokenized deposits and blockchain-based settlements to compete in cross-border payments and digital commerce.
Merchants using PYUSD can access payment proceeds within minutes rather than waiting days for traditional settlement cycles, potentially improving liquidity for cross-border trade.
PayPal introduced PYUSD in the US in 2023. The token is backed by dollar deposits and short-term Treasuries 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 United Kingdom, Peru and Guatemala among those that will gain access. PayPal said additional markets will be added in the coming weeks.
Read more: Stablecoin Market Reaches $312 Billion as Banks, Card Networks Embrace Dollars on Chain
