PayPal USD launches natively on Polygon blockchain via Paxos on July 9, 2026
PayPal USD launches on July 9, 2026, as a stablecoin on the Polygon blockchain, confirmed by PayPal Holdings, Inc. and Paxos Trust Company. alongside Paxos Trust Company confirmed on July 9, 2026, that the PayPal USD (PYUSD) stablecoin has launched natively on the Polygon blockchain and integrated into the network’s Open Money Stack.
This deployment ensures the dollar-backed asset is now minted directly on the chain by Paxos, the stablecoin’s regulated issuer, rather than relying on bridged or wrapped versions of the token.
Direct minting replaces bridging for PayPal USD on Polygon
By joining the Open Money Stack, PYUSD becomes part of a vertically integrated payment system designed to handle end-to-end money movement through a single application programming interface (API).
The move allows businesses to tap into Polygon’s existing infrastructure, which currently settles more than $2.5 billion in stablecoin volume every single day. According to data provided by Polygon Labs, the network has processed more than $2.6 trillion in stablecoins on-chain in total.
By issuing PYUSD natively through Paxos Trust Company—which operates under a national trust charter supervised by the Office of the Comptroller of the Currency (OCC)—PayPal is positioning its asset as a federally regulated option for companies seeking compliant paths between traditional finance and on-chain settlement.
The shift to native issuance is a critical technical distinction for the network. Previously, PYUSD on Polygon existed as a bridged token, which required locking the original asset on another chain to create a representative version. Native issuance means Paxos mints the asset directly on Polygon, reducing the complexity often associated with cross-chain orchestration.
This setup allows the stablecoin to maintain its 1:1 backing with U.S. dollar deposits and short-term Treasuries while allowing for faster and more direct settlements.
Polygon Labs stated that customers will soon be able to build with native PYUSD to manage pay-ins, cross-border moves, and cash-outs through a single integration. While neither company has provided a firm date for when these final integrations go live, the objective remains clear: reducing engineering overhead for businesses.
Marc Boiron, CEO of Polygon Labs, noted that “a stablecoin is only as useful as the places it can go and what it can do when it gets there.”
Improving global payments through the Open Money Stack
The Open Money Stack functions as Polygon’s infrastructure for stablecoin payments, bundling wallets, fiat ramps, and compliance tools. For corporate treasurers, this removes the need to secure separate providers for liquidity and payment rails. Instead, they can utilize the native PayPal USD as a settlement layer within a modular system designed for speed and transparency.
Even as traditional finance explores digital assets, AI and quantum tech divert capital into other sectors, making efficient, regulated payment rails like these a priority for maintaining institutional interest.
Peter Jonas, Chief Revenue Officer at Paxos, noted that the company’s role as a regulated issuer is to bring trusted stablecoins to institutions wherever they are needed. He added that businesses running on the Open Money Stack can now settle in PYUSD with confidence in the regulatory oversight “that serious money requires.”
By utilizing Polygon, PayPal can offer settlement on a network that already processes billions of dollars daily, potentially simplifying the user experience to the point where businesses “stop thinking about stablecoins and just use them.”
Tracking the multi-chain footprint of PYUSD
This deployment is the latest step in a broad multi-chain strategy. Since its initial launch as an ERC-20 token on Ethereum in August 2023, PYUSD has expanded to roughly 17 different networks, including a notable rollout on Solana in May 2024.
As of July 2026, the total circulating supply of PYUSD stands at 2.86 billion, with a market capitalization of approximately $2.714 billion. Daily trading volumes for the asset currently hover around $184 million, reflecting its growing role in the digital asset ecosystem.
The distribution of the supply remains heavily weighted toward established chains. Ethereum currently holds 64.6% of the supply, while Solana accounts for 24.7%. In contrast, Polygon’s share is currently a modest 0.4%, representing $10.13 million. This native launch is viewed as a strategic bet on future distribution.
If the network continues to settle nearly $3 billion in daily volume across all stablecoins, the presence of a native, household-name asset could attract more businesses that previously avoided wrapped or bridged versions of the token.
Regulation and market dynamics in 2026
The stablecoin market remains highly competitive, with established players and new entrants vying for volume. However, PYUSD maintains a unique position due to its supervision by the OCC. This regulatory pedigree is becoming increasingly important as governments worldwide finalize their digital asset frameworks.
In the United States, as the Clarity Act advances to Senate, the demand for “qualified” stablecoins that meet federal standards for 1:1 backing and redeemability is expected to rise.
PayPal has also worked to increase global accessibility, previously opening access to consumers and merchants across 70 international markets in early 2026. The integration with Polygon is likely to benefit these users through lower transaction costs. As of July 9, the conversion rate for the asset is 1 PYUSD to 13.5948 POL.
These lower fees make smaller cross-border transfers more economically viable than they would be on the Ethereum mainnet, providing a practical tool for international B2B and B2C payments.
Future outlook for regulated settlement layers
The industry is currently moving toward a period where only assets with transparent, liquid backing are expected to thrive under new implementation rules. Institutions that were previously hesitant to interact with digital assets now have a path to on-chain liquidity that is both federally supervised and natively issued.
This model provides the “compliance built in” promise that Polygon and Paxos are marketing to the enterprise sector. As Brian Armstrong warns finance must move on-chain to stay relevant, the collaboration between a traditional fintech giant like PayPal and a high-throughput network like Polygon serves as a concrete example of that shift.
Looking forward, the focus will likely remain on reducing friction for the end-user. When the infrastructure becomes invisible, stablecoins can function as simple payment utilities rather than complex financial experiments. For now, the crypto sector will monitor the growth of PYUSD’s supply on Polygon to see if native issuance effectively acts as a catalyst for institutional migration to the Open Money Stack.