The Hashdex research team reported that the market power of stablecoins increased by 3% in the third quarter of 2024. Two of the most well-known fiat-backed dollar stablecoins, USDT and USDC, increased their market share by 1% and 5%, respectively. .
While PayPal’s PYUSD wasn’t as dominant as USDT or USDC, it did grow an impressive 57% in dominance over the same period.
The first financial technology company to issue a USD-backed stablecoin was PayPal, which launched it in August last year. Paxos Trust Company issues PYUSD fully backed by US dollar reserves such as government bonds and cash equivalents. It can be purchased or traded and has a 1:1 exchange rate with the refuge currency.
PYUSD reached a market valuation of $1 billion within a year of its launch. This is almost twice as fast as USDC, the top fiat-backed stablecoin, and three times as fast as USDT. Earlier this year, PayPal’s stablecoin expanded its scope to Solana after a successful debut on Ethereum in 2023.
According to HashDex Research, the outlook for stablecoins in Q4 2024 and next year has improved due to the potential for institutional adoption.
“PYUSD is becoming increasingly popular and is likely to continue gaining market share as distribution expands.”
Stablecoins are becoming increasingly popular in the fintech industry. According to reports, UK-based company Revolut is making good progress in developing its product.
Blockchain startup Ripple also announced plans this spring to launch RLUSD, a dollar-backed stablecoin supported by U.S. dollar deposits, Treasury bills, and similar assets.
Banks such as JPMorgan are also entering the transaction payments industry with the launch of JPM Coin, which aims to enable real-time payments for institutional customers.
