- PayPal has expanded its PYUSD integration, aiming to challenge USDT and USDC in 2025
- PYUSD is struggling with adoption though, recording just $1.24 billion in February transactions.
Amidst the ongoing market volatility, PayPal Holdings is doubling down on its stablecoin ambitions, announcing plans to expand the integration of PYUSD across more products in 2025.
This move positions the payments giant as a challenger to dominant stablecoins like Tether (USDT) and Circle (USDC).
PayPal’s executive weighs in
Speaking in an interview with Bloomberg, Michelle Gill, General manager of PayPal’s small business and financial services division said,
“A lot of the payments we’re expecting are going to be cross-border because merchants in the US are seeking to pay vendors and suppliers abroad. The thesis was: Can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?”
Additionally, in a significant step towards broader stablecoin adoption, PayPal is set to integrate PYUSD into its Hyperwallet platform. This would enable seamless global payments for freelancers and contractors.
This move follows PayPal’s first successful business transaction using PYUSD in 2024, underscoring its commitment to expanding digital asset utility.
Acquired for $400 million in 2018, Hyperwallet will facilitate PYUSD payouts as early as the first half of this year.
What’s more?
Looking ahead, PayPal aims to further enhance its crypto integration by allowing merchants to settle PayPal checkout transactions in digital assets by the end of 2025.
Remarking on the same, PayPal Chief Executive Officer Alex Chriss added,
“We’ve been talking about blockchains for like a decade now — the concept of these things never becomes real until you actually can start to spend it. And I think that’s what we’re enabling.”
That being said, the stablecoin market is witnessing intensified competition as leading players aggressively expand their reach amid evolving regulatory frameworks.
Tether (USDT), despite facing compliance hurdles under Europe’s MiCA regulations, has shifted focus to crypto-friendly regions like El Salvador.
Meanwhile, Circle’s USDC has capitalized on the Solana [SOL] memecoin surge, nearly doubling its market share in the past year. All while securing regulatory approvals, including MiCA compliance and a green light from Dubai’s DFSA.
Adding to the rivalry, XRP has entered the scene with RLUSD – A stablecoin now live on Ethereum and XRPL, boasting an initial supply of 120 million.
Challenges ahead
Despite PayPal’s push for PYUSD adoption, the stablecoin faces stiff competition from dominant players like USDT and USDC.
According to the latest data from VisaOnChainAnalytics, stablecoin transaction volumes in February 2025 totalled $615 billion, with USDT leading at $415.61 billion and USDC following at $197.37 billion.
In contrast, PYUSD recorded a modest $1.24 billion, highlighting the uphill battle it faces in challenging market leaders.
Additionally, PYUSD’s market cap, which peaked at $1.01 billion in August, has since declined, dropping below $500 million by December. This was a sign of the challenges ahead for PayPal’s stablecoin ambitions.
