In a significant move that could reshape cross-border payments for millions, PayPal is dramatically widening the reach of its US-dollar stablecoin, PayPal USD (PYUSD). The financial technology giant announced that, starting in March, the stablecoin will be available to customers in 70 countries worldwide—a leap from its previous availability in just the United States and United Kingdom. This expansion spans major regions including Asia-Pacific, Europe, Latin America, and North America, allowing users to receive, hold, and send PYUSD directly within their PayPal accounts.
Beyond Remittances: Unlocking New Financial Flexibility
The expansion is more than a simple geographic rollout; it introduces core banking-like features to PayPal accounts in many new markets. According to May Zabaneh, PayPal’s head of crypto, the move “gives people faster access to their funds, lower-cost ways to send money across borders, and a more direct path to participating in the global economy.”
A “Balance-Type Concept” and Earned Rewards
For users in newly supported countries, the change unlocks two powerful concepts: the ability to maintain a stablecoin balance and to earn rewards on that balance. This addresses specific pain points in existing PayPal workflows. For instance, users in countries like Peru currently face cross-border fees when withdrawing funds to local currency. With PYUSD, they can send, receive, and store value in US dollars, potentially sidestepping those conversion costs. In markets such as Malawi, where regulations force immediate bank transfers of received funds, PYUSD allows users to keep money in their PayPal wallet, creating a true digital balance. “It unlocks a balance-type concept in these accounts and an earnings concept,” Zabaneh explained in an interview with Fortune.
The Mechanics and Scale of PYUSD
It’s important to note the operational structure: PYUSD is issued by the regulated financial institution Paxos Trust Company, while PayPal handles distribution and customer access. This division of responsibilities aligns with regulatory frameworks for stablecoins.
The expansion comes nearly two years after PYUSD’s launch in August 2023. The stablecoin has achieved substantial scale, ranking as the seventh-largest USD-pegged stablecoin globally with a market capitalization of approximately $4.1 billion, according to data from CoinGecko. Its growth has been particularly pronounced; market cap surged over 600% in 2025, from around $500 million at the start of the year to $3.6 billion by its end.
Top eight USD-pegged stablecoins by market capitalization. Source: CoinGecko.
PayPal did not immediately respond to Cointelegraph’s request for comment by the time of publication. This expansion signals a major bet by the payments giant on the utility of stablecoins for everyday financial activities beyond speculative trading, directly competing with traditional remittance services and offering a regulated, dollar-denominated alternative in economies with volatile local currencies.
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