TheBlock
PayPal is moving its PYUSD stablecoin to native issuance on Polygon, removing the bridge-wrapped version that has constrained how businesses move the dollar token between chains. Businesses can now use PYUSD through Polygon's Open Money Stack, the companies said.
Polygon disclosed that more than $2.6 trillion in stablecoin transactions have been settled on its network, framing PYUSD's native arrival as a vote of confidence in its payments-grade rails. The chain has spent the last year pitching itself as low-cost infrastructure for dollar payments, tokenized assets, and real-world settlement.
Why it matters
Native issuance matters because it lets PayPal bypass the wrapped-token model that has complicated stablecoin settlement across chains. Businesses using PYUSD no longer need to redeem and re-mint as they move between ecosystems; the token exists on Polygon in the same form PayPal issues it. That makes PYUSD programmatically compatible with Polygon's growing suite of payment and treasury tools.
Market impact
The move sharpens competition among the second-tier chains courting institutional stablecoin flow, an arena dominated by Tron and Ethereum's L1. With $1B in PYUSD outstanding and a PayPal user base that still dwarfs most crypto-native distribution, the unlock is most consequential for merchant and business payment rails, the segment Polygon has been marketing aggressively to fintechs and banks.
Frequently asked questions
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What is changing with PYUSD on Polygon?
PayPal is now issuing PYUSD natively on Polygon, replacing the bridge-wrapped version. Businesses can also access the token through Polygon's Open Money Stack.
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Why does native issuance matter for a stablecoin?
Native issuance removes the need to redeem and re-mint PYUSD when moving between chains, making the token plug-and-play with Polygon's payment and treasury tools.
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How much stablecoin volume has Polygon handled?
Polygon said more than $2.6 trillion in stablecoin transactions have been settled on its network to date.
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How big is PYUSD right now?
PYUSD has roughly $1 billion in supply, backed by PayPal's distribution reach that still dwarfs most crypto-native issuers.
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Which chains compete with Polygon for institutional stablecoin flow?
Tron and Ethereum's L1 still dominate the institutional stablecoin segment, with Polygon positioning itself as a lower-cost payments-grade alternative.
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