- PayPal USD circulation hits new high, increasing by 125.5%.
- Reported by KPMG, endorsed by Paxos.
- Changes affect Ethereum-based DeFi markets.
The circulation of PayPal USD (PYUSD) has surpassed 2.6 billion tokens as of mid-October 2025, rising by 125.5% since August. This expansion is supported by KPMG’s assurance report, confirming collateral of $2,652,728,424.
PayPal USD (PYUSD) has surpassed a circulation of 2.6 billion tokens by mid-October 2025, marking a 125.5% increase since August, according to a KPMG report. Paxos Trust Company issued this stablecoin on behalf of PayPal Inc.
Stablecoin growth highlighted by PayPal USD’s increasing circulation indicates enhanced liquidity and DeFi activity on Ethereum’s network, yet price effects remain unclear.
“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 confirmed that the total circulation of PYUSD exceeded 2.6 billion tokens. This shows a 125.5% surge since August. Data in the KPMG attestation report corroborates their role in issuing PYUSD for PayPal.
The increase in the PYUSD supply is expected to lead to greater liquidity across Ethereum’s networks. Such surges often increase liquidity in DeFi applications. However, despite this increase, market prices have not significantly adjusted.
Financial and market implications may include increased liquidity in lending and swap platforms. Paxos reported $2,652,728,424 in backing collateral, supporting the current PYUSD supply. This emphasizes ongoing commitment to collateralization standards critical for market stability.
The broader implications of such circulation events could lead to shifts in DeFi market dynamics. Historical trends suggest stablecoin expansions often facilitate increased blockchain activity. Regulators have not released new updates, but sector monitoring remains vital.
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