The Crypto Desk

PayPal’s PYUSD stablecoin supply exceeds that on Ethereum within the Solana network.

PayPal’s U.S. dollar-pegged stablecoin, PYUSD, has seen its supply on the Solana blockchain surpass that on Ethereum, as recent data shows.

Since its expansion to Solana in May 2024, PYUSD’s supply on the platform has climbed to 377 million tokens, overtaking the 356 million tokens currently on Ethereum.

Initially launched on Ethereum in August 2023 in collaboration with Paxos, PYUSD quickly gained momentum, reaching a supply of 230 million by the end of that year.

The stablecoin’s total supply has now tripled, exceeding 733 million tokens, each valued at $1.

PYUSD’s Expansion on Solana Accelerated by Key Integrations

PYUSD’s rapid growth on Solana has been driven by its integration into decentralized exchanges such as Jupiter and Orca, where it has become a key part of liquidity pools.

This expansion has strengthened PYUSD’s presence on Solana, positioning it alongside major stablecoins like USDC and USDT.

With a market capitalization of $733 million, PayPal now ranks as the fourth-largest centralized stablecoin issuer, following Tether (USDT), Circle (USDC), and First Digital (FUSD), which have market caps of $120 billion and $36 billion, respectively.

PayPal’s PYUSD stablecoin on the Solana blockchain now includes a feature called “confidential transfers,” designed to enhance user privacy while maintaining transparency for regulatory purposes.

This feature allows merchants using PYUSD to offer transactional confidentiality to their customers, meaning that transaction amounts can be concealed from public view, providing a layer of privacy while still ensuring regulatory compliance.

Solana Brings Additional Benefits for PYUSD

Beyond confidential transfers, Solana’s token extension standard, which aligns with the SPL token standard, offers several advantages for PYUSD. These include reduced development and testing efforts, enterprise-ready capabilities that are easily integrated, and greater flexibility.

The open standard of token extensions enables PYUSD to be utilized not only within the PayPal ecosystem but also with any compatible wallet, exchange, or library outside of PayPal.

Launched in August 2023, PYUSD is primarily backed by U.S. Treasury Reverse Repurchase Agreements, according to Paxos, the stablecoin’s issuer. Its circulating supply has grown by 50% since the beginning of the year, with a 24-hour trading volume of around $18 million, according to CoinGecko.

Initially available only on Ethereum, the Paxos-issued stablecoin now has a total circulation of approximately $400 million, with a current supply of $5 million on the Solana blockchain, as noted by Solana’s network explorer.

Regulatory Landscape for Stablecoins

The stablecoin market, currently valued at over $140 billion, remains largely unregulated. Last month, Senators Cynthia Lummis and Kirsten Gillibrand proposed a new bill aimed at regulating stablecoins. The proposed legislation would impose reserve and operational requirements on payment stablecoin issuers, including the creation of subsidiaries dedicated to issuing stablecoins.

Senators Lummis and Gillibrand have previously introduced various bills addressing the digital assets market, with a focus on defining decentralized finance and establishing federal agency jurisdiction over cryptocurrencies.

In related news, Singapore-based payments company Triple-A recently announced plans to integrate PayPal’s stablecoin into its list of supported tokens for customer payments.

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