PayPal PYUSD Stablecoin Plans to Take On Tether (USDT) Dominance in 2025

PayPal Holdings announced that it would integrate its PYUSD stablecoin into more products this year in 2025, challenging the likes of dominant players like Tether (USDT) in the sector. for this, the payments giant will leverage its existing global network of 20 million merchants which can give an instant boost to its stablecoin adoption.

PayPal to Integrate PYUSD Stablecoin for Merchant Bill Payments

Payments giant PayPal announced that it would offer its PYUSD stablecoin to more than 20 million small-to-medium-sized merchants, and further pay to vendors through its upcoming bill-pay product by the end of 2025. Similar to Tether’s USDT, PYUSD is pegged to the Dollar in 1:1 ratio.

Michelle Gill, general manager of PayPal’s small business and financial services group said that the goal is for merchants to invite their vendors into the PayPal network and thereby facilitate easier and faster transactions. During his recent interview with Bloomberg, Gill said:

“A lot of the payments we’re expecting are going to be cross-border because merchants in the US are seeking to pay vendors and suppliers abroad. The thesis was: Can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?”

Leveraging Its Hyperwallet Acquisition

Last year in 2024, PayPal completed the first business transaction using its native stablecoin PYUSD. Now, the firm plans to use this USD-pegged stablecoin through Hyperwallet, which helps freelancers and contractors globally to send mass payments.

Payments giant PayPal had acquired Hyperwallet back in 2018 for around $400 million. Using this platform, the firm plans to have PYUSD payouts live in just the first half of this year. Also, by the end of 2025, the platform will allow merchants to settle PayPal checkout transactions in digital assets. PayPal Chief Executive Officer Alex Chriss said:

“We’ve been talking about blockchains for like a decade now — the concept of these things never becomes real until you actually can start to spend it. And I think that’s what we’re enabling.”

Stablecoin Market Competition Heating Up

Stablecoin market competition has been heating up as top players have been looking to expand their market footprint amid growing regulatory clarity. While Tether (USDT) had to exit the European market amid compliance issues after the implementation of the MiCA rules, it is seeing other bigger roles in crypto-friendly markets like El Salvador.

Similarly, Circle’s USDC has made the most of the Solana meme coin frenzy nearly doubling its market presence over the last year. In addition to being MiCA compliant, USDC also secured approval from the Dubai Financial Services Authority (DFSA).

On the other hand, blockchain startup Ripple is also pushing its RLUSD into the market taking the competition bar higher. With a supply of 120 million, the stablecoin has already launched on the Ethereum and XRPL (XRP Ledger) network.

Benjamin Cowen, the head of research at Into The Cryptoverse, shared the stablecoin supply ratio oscillator (SSRO) which has now dropped under the 0 levels, hinting that Bitcoin (BTC) might unveil its potential moving ahead from here.