Ethereum's Stablecoin Supply Surpassed by PayPal's PYUSD on Solana 🚀

Exploring the Growth of PYUSD Across Blockchains📈

PayPal’s stablecoin, PYUSD, has seen significant growth on the Solana blockchain, surpassing its supply on Ethereum. Since expanding to Solana in May 2024, PYUSD’s supply has hit 377 million tokens, exceeding the 356 million tokens on Ethereum. Initially launched on Ethereum in August 2023 through a partnership with Paxos, PYUSD quickly gained traction, with its supply reaching 230 million by the end of that year. The stablecoin’s total supply has now tripled, exceeding 733 million tokens valued at $733 million.

PYUSD’s Growth on Solana🚀

The growth of PYUSD on Solana has been driven by recent integrations into decentralized exchanges like Jupiter and Orca, where PYUSD has been added to liquidity pools. This expansion has helped PYUSD establish a significant presence on Solana, alongside leading stablecoins such as USDC and USDT. With a market capitalization of $733 million, PayPal ranks as the fourth-largest centralized stablecoin issuer, following Tether (USDT), Circle (USDC), and First Digital (FUSD).

Solana offers multiple benefits for PYUSD:

The token extension standard on Solana complies with the SPL token standard
It reduces development and testing efforts
Enterprise-ready capabilities can be easily integrated
Enhanced flexibility for PYUSD

The Future of PYUSD with Solana🔮

PYUSD, primarily backed by U.S. Treasury Reverse Repurchase Agreements, has experienced a 50% increase in its circulating supply since the beginning of the year. It currently boasts a 24-hour trading volume of approximately $18 million. Previously exclusive to Ethereum, the stablecoin now circulates around $400 million, with a supply of $5 million on the Solana blockchain. Notably, the stablecoin market, valued at over $140 billion, remains unregulated.

Regulating Stablecoins🔒

Senators Cynthia Lummis and Kirsten Gillibrand recently proposed a bill aimed at regulating stablecoins. The legislation would require payment stablecoin issuers to meet reserve and operational requirements, including establishing subsidiaries dedicated to issuing stablecoins. This move comes in the wake of increasing attention on stablecoins and their impact on the financial market.

Integration of PYUSD into Payment Systems💳

Singapore-based payments company Triple-A announced plans to integrate PayPal’s stablecoin into its list of supported tokens for customer payments. This integration showcases the growing utility and adoption of stablecoins in mainstream financial transactions, paving the way for broader acceptance and usage.

Hot Take🔥

As the landscape of stablecoins continues to evolve, the rise of PYUSD on the Solana blockchain signifies a shift in the distribution and utilization of stablecoin supplies. With new regulations on the horizon, the stability and growth of these digital assets will shape the future of finance.

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