The PayPal Stablecoin Takeover

PayPal's PYUSD stablecoin has achieved the unthinkable — surpassing Tether's USDT as the most traded dollar-pegged cryptocurrency with $18 billion in daily volume. The 600 million PayPal users can now instantly convert fiat to stablecoins and back, creating seamless on-ramps and off-ramps for the crypto economy. Venmo's integration has been particularly successful, with 25 million users now holding PYUSD balances.

PYUSD's 1:1 backing with U.S. Treasuries and daily attestations by Deloitte have built institutional trust that USDT has struggled to achieve. The stablecoin's integration with PayPal's merchant network allows businesses to accept crypto payments with instant settlement to fiat. This has driven 40% of PYUSD volume from small business transactions rather than speculative trading.

Tether's Fall from Grace

Tether's market share has collapsed from 70% to 42% as regulatory scrutiny intensifies and institutions seek compliant alternatives. PYUSD's transparent reserves and regulatory compliance have made it the preferred stablecoin for DeFi protocols and NFT marketplaces. The stablecoin's growth has also benefited from PayPal's global reach, with 45% of volume coming from emerging markets where traditional banking is limited.