PayPal (PYPL) Expands PYUSD Stablecoin to 68 New Countries for Cross-Border Payments

TLDR

• PayPal is rolling out its dollar-backed stablecoin PYUSD to users in 70 markets, up from just the US and UK.
• New regions include parts of Africa, South America, Asia-Pacific, Europe and Latin America.
• Merchants can now access payment proceeds within minutes rather than waiting days.
• PYUSD’s market cap has grown to roughly $4.1 billion, up from under $1 billion a year ago.
• U.S. users currently earn around 4% annually on PYUSD balances, a feature being extended globally.

PayPal announced on March 17 that it is expanding access to its dollar-pegged stablecoin, PYUSD, to users across 70 markets worldwide. Until now, the token was only available to users in the United States and the United Kingdom.

PayPal Holdings, Inc., PYPL

The rollout adds 68 new countries, with coverage stretching into Africa, South America, Asia-Pacific and Latin America. Countries including Singapore, Peru and Guatemala are among those gaining access, with more to be added in the coming weeks.

Users in newly supported regions can now hold, send and receive PYUSD directly inside their PayPal wallets. They can also transfer the token to external crypto wallets or convert it to local currency when withdrawing.

The move removes a previous limitation that forced users in many markets to convert funds to local currency or withdraw to a bank account immediately. In markets like Malawi, PayPal transfers had historically required instant bank withdrawals.

May Zabaneh, PayPal’s senior vice president and head of crypto, described the expansion as a way to open up “cross-border transfers and volume, where the pain is felt so high.”

PYUSD launched in August 2023 in partnership with Paxos Trust Company. It is backed 1:1 by U.S. dollar deposits, short-term Treasuries and cash equivalents, and issued under U.S. regulatory oversight.

Faster Settlement for Merchants

One of the key changes for businesses is settlement speed. Merchants accepting PYUSD can now access payment proceeds within minutes, compared to the days typically required through traditional payment rails.

That faster turnaround could help with cash flow for merchants operating in high-volume or cross-border commerce. PayPal says the token can lower costs and cut down on the number of intermediaries involved in international payments.

The rewards feature is also going global. U.S. users currently earn around 4% annually on PYUSD balances, turning idle wallet balances into something closer to a yield-bearing account.

Where PYUSD Stands in the Stablecoin Market

PYUSD’s market cap has climbed to approximately $4.1 billion, up from under $1 billion a year ago. That still puts it well behind the sector’s leaders.

Tether’s USDT holds the top spot with a market cap of around $143 billion. Circle Internet’s USDC sits at roughly $78 billion.

The stablecoin has expanded beyond its original Ethereum base to Solana, Arbitrum and Stellar, with interoperability layers extending its reach further.

PayPal has not published a full list of the newly supported countries. The rollout is expected to appear gradually within the app for eligible users over the coming weeks.

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