PayPal (PYPL) Launches PYUSD Stablecoin in 68 Additional Markets Worldwide

Key Highlights

• PayPal’s PYUSD stablecoin now reaches users in 70 countries worldwide, a significant jump from its initial US and UK availability.
• The expansion encompasses regions across Africa, Latin America, South America, Asia-Pacific, and Europe.
• Business owners can receive payment settlements in minutes instead of the traditional multi-day waiting period.
• The stablecoin’s total market capitalization has surged to approximately $4.1 billion from less than $1 billion twelve months ago.
• American users benefit from roughly 4% annual returns on PYUSD holdings, with this feature rolling out internationally.

On March 17, PayPal revealed plans to broaden availability of PYUSD, its U.S. dollar-backed stablecoin, to consumers in 70 countries around the globe. Previously, the digital currency was exclusively accessible to residents of the United States and United Kingdom.

PayPal Holdings, Inc., PYPL

This expansion introduces 68 additional nations across Africa, Latin America, South America, and the Asia-Pacific region. Nations such as Singapore, Peru, and Guatemala are now included, with additional territories expected to join in subsequent weeks.

Residents in these newly eligible territories can store, send, and receive PYUSD within their PayPal accounts. Additionally, they have the option to move tokens to third-party cryptocurrency wallets or exchange them for their local currency during withdrawal.

This development eliminates a prior constraint that required users in numerous countries to immediately convert funds to their national currency or withdraw directly to bank accounts. In countries like Malawi, PayPal transactions previously mandated immediate bank transfers.

May Zabaneh, who serves as PayPal’s senior vice president overseeing cryptocurrency operations, characterized the expansion as an initiative to address “cross-border transfers and volume, where the pain is felt so high.”

PYUSD debuted in August 2023 through a collaboration with Paxos Trust Company. The stablecoin maintains 1:1 backing through U.S. dollar reserves, short-duration Treasury securities, and cash equivalents, all under U.S. regulatory supervision.

Accelerated Payment Processing for Businesses

A major advantage for commercial entities involves settlement velocity. Businesses that accept PYUSD payments can now receive their funds within minutes, contrasting sharply with the multiple days typically needed using conventional payment infrastructure.

This expedited processing timeline could significantly improve liquidity management for merchants engaged in high-transaction-volume or international commerce. According to PayPal, the token reduces expenses and eliminates multiple intermediaries traditionally involved in cross-border transactions.

The yield-generating feature is also expanding internationally. American account holders currently receive approximately 4% annual interest on PYUSD holdings, transforming dormant wallet funds into interest-bearing assets.

PYUSD’s Position Among Competing Stablecoins

PYUSD’s total market capitalization has reached roughly $4.1 billion, representing substantial growth from its sub-$1 billion valuation one year earlier. Despite this progress, it remains significantly behind industry frontrunners.

Tether’s USDT commands the market with approximately $143 billion in market capitalization. Circle Internet’s USDC follows with roughly $78 billion.

The stablecoin has diversified beyond its initial Ethereum foundation to include Solana, Arbitrum, and Stellar networks, with additional interoperability features extending its operational scope.

PayPal has yet to release a comprehensive catalog of newly supported nations. The phased rollout is anticipated to become visible within the application for qualified users throughout the upcoming weeks.

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