PayPal is rolling out access to its PYUSD stablecoin in 68 additional countries, sharply widening where people can use it for payments and transfers. The deployment focuses on developing countries in Asia‑Pacific and Africa, where cross‑border remittances still arrive slowly and cost a lot.
Paxos issues PYUSD, a stablecoin denominated in US dollars that is fully backed by cash and short-term US Treasury bonds. Because it always converts at one dollar per token on PayPal’s platform, customers benefit from familiar accounting and price stability.
What PYUSD Expansion Actually Enables
With this expansion, PayPal’s disbursement partners can now use PYUSD to settle cross‑border transfers routed through Xoom, PayPal’s money‑transfer service. U.S. users already can fund Xoom transfers by converting PYUSD to dollars and sending money to about 160 countries with no Xoom fee.
In the new 68 countries, local partners can receive PYUSD‑funded settlements and pay out in local currencies to bank accounts, cash pickup points, or mobile wallets. This setup lets money move over blockchain rails in the background while recipients still see normal fiat at the end.
PayPal says the goal is to support 24/7 transfers that are not limited by banking hours or regional clearing systems. For users, that can mean faster delivery times and fewer layers of FX and wire fees compared to some legacy routes.
How PYUSD Works Under the Hood
PYUSD launched in 2023 on Ethereum and later expanded to Solana and Stellar for cheaper, faster settlement. PayPal’s terms show that Paxos issues and redeems the tokens, while PayPal buys and sells PYUSD at a fixed one‑dollar rate inside its app.
This implies that a PayPal user won’t have to worry about price slippage within the PayPal ecosystem if they purchase PYUSD, hold it, and then convert it back to dollars. PYUSD transfers across compatible wallets, exchanges, and DeFi protocols and trades on public blockchains outside of PayPal.
Under the supervision of New York regulators, reserves supporting PYUSD are kept in dollar deposits, Treasuries, and comparable cash equivalents. Additionally, Paxos allows direct redemption for one dollar per token, subject to compliance checks and its own restrictions.
PayPal’s leadership has repeatedly said stablecoins are central to its strategy for cross‑border payments and digital commerce. PYUSD’s supply grew more than 200% in under three months during 2025, according to DeFiLlama data cited in public reports.
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