The market capitalization of PayPal‘s PYUSD stablecoin has grown from $1,2 billion in September to $3,8 billion today, according to blockchain data. This is one of the fastest increases in the asset market.
In November, the PYUSD supply increased by approximately 113%, while the number of transactions grew by 150% to reach 1,8 million. Despite the fact that PayPal’s digital asset is relatively new compared to USDT from Tether and Circle’s USDC, it became the second-fastest-growing stablecoin in Q3 2025, behind Ethena’s USDe, which grew 173% during the same period.
One of the reasons for the digital asset’s rapid growth was PayPal’s integration with LayerZero, which helped expand PYUSD to nine additional blockchains, including Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron, as well as updated versions of Berachain and Flow. The expansion gave the stablecoin direct access to over 400 million active PayPal and Venmo users.
Positive sentiment from the growing market capitalization has somewhat dampened the digital asset’s annualized yield, which stands at 3,7%. This is inconsistent with the US GENIUS Act, which prohibits stablecoins from generating income. PayPal has not yet clarified how it will address these federal regulatory concerns, leaving questions about the stablecoin’s legality and future open.