PayPal brings PYUSD stablecoins to Polygon\'s open money stack

PayPal USD (PYUSD) is now natively available on Polygon

PayPal USD (PYUSD) is natively available on Polygon through Polygon\'s open currency stack, giving companies direct access to this regulated stablecoin, covering payment, compliance and fiat exchange services.

Summary

PayPal USD is now natively issued on Polygon via an open money stack, allowing companies to directly use regulated stablecoins for payments and settlements. This integration integrates wallets, fiat channels and compliance tools into a single system, simplifying cross-border payments and local currency settlements. The release is another expansion of PayPal\'s PYUSD after it launched its PYUSDx platform in February, following MasterCard\'s decision to support PYUSD for stablecoin settlement on multiple blockchains.

PYUSD natively landed on Polygon

According to Polygon Labs, PYUSD released by Paxos is now natively released on Polygon and integrated into the Polygon open currency stack. Companies that already process payments online can access the stablecoin directly through the wallets, fiat channels and compliance tools they are using. Polygon Labs said this integration eliminates the need for companies to connect with different service providers separately to obtain stablecoin issuance, fiat deposits, compliance and payment infrastructure. Instead, companies can accept payments from bank cards, bank accounts or exchange balances through a single integration, conduct cross-border settlement in PYUSD, and convert funds back to local currency.

The company pointed out that the simplified setup reduces engineering workload, reduces operating costs, and accelerates settlement times by integrating regulated fiat channels and compliance services within the same payment infrastructure. Polygon Labs also mentioned that its network has settled more than $2.6 trillion in stablecoin transactions to date and is used by companies such as Revolut and Stripe. Companies running payments services on Polygon can now access PYUSD without having to change existing infrastructure.

Companies target cross-border payments

According to Polygon Labs, companies such as payroll providers, online marketplaces and remittance platforms can use PYUSD to make payments to contractors, settle accounts with international sellers, and transfer funds to overseas markets without having to build their own banking and compliance systems. End users will benefit from faster funds arriving, fewer transaction failures, and faster local currency conversions.

Regulatory background and industry impact of PYUSD

PYUSD is issued by Paxos under its national trust license and regulated by the Office of the Comptroller of the Currency (OCC), making it one of the largest U.S. dollar stablecoins issued by a federally regulated entity. Polygon Labs said that combining this regulated stablecoin with a licensed fiat channel provides companies with a compliance path from the traditional financial system to on-chain settlement. \"The value of a stablecoin depends on where it can go and what it can do when it arrives,\" said Marc Boiron, CEO of Polygon Labs. He added that bringing PYUSD to the open currency stack allows companies to receive payments, transfer funds across borders and complete withdrawals through a single integration, with built-in compliance features.

\"PYUSD is issued under an OCC-regulated national trust license, and connecting it natively to Polygon means that a federally regulated, dollar-backed stablecoin is deployed on one of the most active networks in the stablecoin payments space. Companies operating on the open money stack can now settle with PYUSD with confidence because they know this stablecoin has the compliance and regulatory oversight needed for rigorous funding,\"added Peter Jonas, chief revenue officer at Paxos.

This release is another expansion of PYUSD. Previously, PayPal and MoonPay launched the PYUSDx platform in February, allowing developers to issue application-specific stablecoins supported by PYUSD without building payment infrastructure from scratch. At the time, the two companies said the growing popularity of stablecoins has driven the need for faster deployment of custom digital currencies. In addition, MasterCard decided in June to include PYUSD, along with five other regulated U.S. dollar stablecoins, in its settlement network across multiple blockchains, including Polygon. MasterCard said the service will allow participating financial institutions to settle card transactions outside traditional bank hours, while maintaining existing security and compliance standards.