PayPal Expands Stablecoin Strategy with Native PYUSD on Polygon

By Patricia Miller

2 min read

PayPal has launched its PYUSD stablecoin natively on the Polygon blockchain, enhancing transactions for businesses with improved speed and security.

#What is PayPal's Latest Move in Cryptocurrency?

PayPal has recently enhanced its stablecoin strategy by announcing that PYUSD is now natively issued on the Polygon blockchain as of July 9, 2026. The issuance is facilitated by Paxos Trust Company, and it integrates with Polygon’s Open Money Stack. This toolkit provides businesses with compliant fiat on-ramps, off-ramps, and stablecoin infrastructure, allowing them to operate without extensive development tasks.

Using PYUSD as a native asset rather than a bridged one is a significant advancement. Bridged assets often expose transactions to additional risks because their security relies on the bridge itself. Given that crypto bridges have been vulnerable to attacks, minting PYUSD directly on Polygon provides a safer alternative. Here, PYUSD is treated as a primary asset on the network, distinguishing its operation from assets tied to Ethereum.

#What Advantages Does Native Issuance Bring?

Speed and transaction costs are crucial benefits of this native issuance. Polygon’s network stands out as both faster and more cost-effective compared to Ethereum's base layer. This efficiency becomes particularly important when processing high-volume enterprise payments.

Originally launched in August 2023 as an ERC-20 token on Ethereum, PYUSD quickly expanded its reach. By March 2026, PayPal had rolled out PYUSD access for consumers and merchants in 70 international markets. The recent integration with Polygon reflects a strategic infrastructure improvement following the earlier global launch.

#What Are the Current Metrics for PYUSD?

As of July 2026, PYUSD boasts a market capitalization of approximately $2.714 billion with a daily trading volume of about $184 million. Such figures underscore the steady growth and acceptance of this stablecoin in the marketplace.

On the reserve side, PYUSD maintains backing with U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents, with monthly attestations by independent firms ensuring transparency and trust.

Paxos Trust Company continues to serve as the core infrastructure provider for PYUSD, having previously issued Binance’s BUSD before it was retracted due to regulatory challenges. This relationship bolsters the credibility and reliability of PayPal’s stablecoin initiative as it explores new frontiers in the crypto landscape.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.