PayPal’s PYUSD Supply Crosses $4 Billion
The Defiant
by Denis OmelchenkoFebruary 19, 2026
AI-Generated Deep Dive Summary
PayPal’s PYUSD stablecoin has reached a significant milestone, with its total market capitalization surpassing $4 billion. This achievement has solidified its position as the fourth-largest stablecoin on Layer 2 (L2) Arbitrum One, following a partnership with USDai. The rise of PYUSD highlights its growing influence in the decentralized finance (DeFi) ecosystem and underscores PayPal’s expanding role in Web3.
PYUSD, introduced by PayPal earlier this year, has gained traction due to its integration into DeFi protocols and its association with Arbitrum One. According to data from consulting firm Entropy Advisors, over $220 million worth of PYUSD is currently circulating on the Arbitrum network. This places it just behind major stablecoins like USDAI, USDC, and USDT in terms of market dominance. The increase in PYUSD supply on Arbitrum One reflects its growing adoption as a reliable and scalable asset within the DeFi space.
The success of PYUSD can be attributed to its seamless integration with PayPal’s payment infrastructure, which has attracted both institutional and retail investors. As a stablecoin backed by the U.S. dollar, PYUSD offers users stability and liquidity, making it an attractive option for those looking to participate in DeFi without exposure to the volatility of cryptocurrencies like Bitcoin or Ethereum. This has contributed to its rapid adoption on platforms such as Aave and Compound, where it is used for lending, borrowing, and yield farming.
For readers interested in crypto and DeFi, the rise of PYUSD matters because it demonstrates how traditional financial institutions like PayPal are increasingly engaging with Web3 technologies. By offering a stablecoin that bridges the gap between conventional finance and decentralized systems, PayPal is positioning itself as a key player in the future of digital currencies. Additionally, the growth of PYUSD on Arbitrum One underscores the importance of Layer 2 solutions in enhancing scalability and transaction speed for DeFi applications.
In summary, PayPal’s PYUSD has emerged as a significant force in the crypto and DeFi space, with its market cap exceeding $4 billion and its dominance on Arbitrum One. This
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Originally published on The Defiant on 2/19/2026