PayPal's stablecoin, PayPal USD, has recently surpassed $1 billion in total market capitalization, according to data from CoinMarketCap.
The stablecoin, which was launched in 2023, is backed by US dollars at a 1:1 ratio and is issued by Paxos Trust Company, a US-regulated company.
According to Dan Schulman, president and CEO of PayPal, the growing shift to digital currencies requires a stable, easy-to-connect instrument that is both digitally native and backed by a fiat currency such as the US dollar.
PYUSD, which is an ERC-20 token compatible with Ethereum, is the only stablecoin currently supported by PayPal's payments infrastructure.
It has been designed to be easily accessible by third-party developers, wallets and Web3 applications, as well as to be easily onboarded by crypto exchanges.