PayPal\'s USDC-Pegged Stablecoin PYUSD Market Supply Surpasses 500M Tokens

Launched in August 2023 through a partnership with custodian firm Paxos, PYUSD's supply reached 230 million by the end of 2023.

PayPal’s stablecoin, pegged to the U.S. dollar and known as PYUSD, has seen its market supply cross the half-a-billion mark.

Launched in August 2023 via a partnership with custodian Paxos, PYUSD’s supply reached 230 million by the end of 2023. Since then, the stablecoin’s total circulating supply has more than doubled, crossing the 500-million mark this month, data from DeFiLlama shows.

In the past month alone, PYUSD’s supply has increased by 97%, rising from 270 million on June 26 to over 533 million. This growth now positions PayPal among the top ten stablecoin issuers, with Tether USD leading the space with a supply of over 112 billion.

The growth in PYUSD’s supply follows its expansion to the Solana network in May. Solana now hosts about 134.5 million PYUSD tokens, which is 25.2% of the overall supply. At the same time, nearly 399 million PYUSD stablecoins are on Ethereum, according to The Block’s price page.

PYUSD’s adoption on centralized exchanges like Crypto.com and its integration into decentralized finance protocols such as Curve and Frax have also contributed to the stablecoin’s growth over the past year.

Currently, Paxos holds the largest portion of PYUSD on Ethereum, with 112 million tokens, which is over 20% of the total supply. This is followed by the Crypto.com exchange with 103 million, Defiance Capital with 35 million, BitGo with 14.8 million, and Curve with 14 million, according to on-chain data from Nansen.

In the early months of 2024, PayPal USD showed promising growth, with its circulation reaching highs of $304 million in February and $301 million in January. However, despite the broader crypto market rally in March, which saw Bitcoin hit new all-time highs, PYUSD’s market capitalization began to decline from late February after peaking at $312 million on February 26.

As of the end of March, the PayPal USD treasury held $14.9 million in United States Treasury bonds, with a notional value of about $14.8 million. The total net assets stood at $192 million, against a notional position value of $189 million. This reflects the collateral backing the stablecoin, primarily in U.S. Treasury bond-collateralized reverse repurchase agreements, valued at $177.9 million in current market value and $174 million in notional position.

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