PayPal Stablecoin Hits $3.4bn on Surging Transactions Volume
PayPal stablecoin, PYUSD, reached $3.44 billion in market capitalisation on growing transaction volume. PYUSD is expanding its blockchain footprint and institutional utility, though it faces competitive outflows.
Transaction volume is on an uptrend on Monday, recording an increase of about 90% over the last 24 hours to $72 million, according to trading data from a crypto exchange.
PayPal USD leverages Stellar’s low-cost, high-speed rail for global settlements, aiming to unlock new use cases in cross-border payments, wallet access, and business finance.
Through collaboration with other networks, PayPal has continued to expand the stablecoin’s accessibility and utility for real-world payments. PayPal positions PYUSD as a more programmable digital dollar for commerce and emerging markets.
Also, Ondo Finance’s Q1 2026 report highlighted a strengthened partnership with PayPal, including a $25 million facility. This connects PYUSD with Ondo’s yield-bearing tokenised treasury product (OUSG), enabling instant conversions.
This is bullish for PYUSD because it embeds the stablecoin deeper into the institutional real-world asset (RWA) ecosystem. It transforms PYUSD into a key liquidity source for on-chain finance, driving demand beyond simple payments
Latest data revealed that the total stablecoin market cap hit a record $321.76 billion, fueled by $1.08 billion in weekly inflows. However, PYUSD declined 1.78%, representing over $61 million in outflows, while rivals like USDC and USDS grew.
This is neutral-to-bearish for PYUSD in the short term, indicating competitive pressure and capital rotation within the sector. It underscores the challenge of maintaining market share against larger incumbents and newer, yield-focused stablecoins.
