Key Developments in PYUSD Circulation
The circulation of PayPal USD (PYUSD) has surpassed 2.6 billion tokens as of mid-October 2025, marking a significant increase of 125.5% since August. This expansion is supported by a recent assurance report from KPMG, which confirms the collateral backing the tokens amounts to $2,652,728,424.
PayPal USD, a stablecoin issued by Paxos Trust Company on behalf of PayPal Inc., has demonstrated robust growth in its circulating supply. This development was detailed in a KPMG report, highlighting the stablecoin's increasing presence in the market.
Impact on Ethereum DeFi Markets
The notable increase in PayPal USD's circulation suggests enhanced liquidity and potentially increased Decentralized Finance (DeFi) activity on the Ethereum network. While stablecoin growth often correlates with on-chain activity, the direct impact on market prices remains to be fully observed.
"The growing use of stablecoins is driving a significant increase in on-chain activity on both Ethereum's Layer 1 and Layer 2 networks, but this fundamental improvement has not yet been fully reflected in market prices." — Tom Lee, Managing Partner, Fundstrat
Paxos Trust Company has officially confirmed that the total circulation of PYUSD has now exceeded 2.6 billion tokens, representing a substantial surge of 125.5% from its August figures. The KPMG attestation report provides concrete data that corroborates Paxos's role in issuing this stablecoin for PayPal.
The expansion in PYUSD supply is anticipated to contribute to greater liquidity across various Ethereum-based networks. Historically, such increases in stablecoin supply often facilitate heightened activity within DeFi applications. However, despite this growth, market prices have not yet shown a commensurate adjustment.
Financial and Market Implications
The financial and market implications of this surge in PYUSD circulation could include a notable increase in liquidity within lending and swap platforms. Paxos has reported that the backing collateral currently stands at $2,652,728,424, which directly supports the existing PYUSD supply. This figure underscores the ongoing commitment to maintaining collateralization standards, which are crucial for overall market stability.
The broader implications of such circulation events may lead to observable shifts in the dynamics of DeFi markets. Past trends have indicated that expansions in stablecoin supply frequently serve as a catalyst for increased blockchain activity. While regulators have not issued new directives, continuous monitoring of the sector remains essential.