Paxos Announces Native Issuance of PayPal USD on Polygon Chain
Paxos has officially issued PayPal USD (PYUSD) natively on the Polygon chain, providing on-chain dollar settlement services for institutions and enterprises through the Polygon Open Money Stack, covering deposit, withdrawal, and compliance functions.
The Polygon chain currently has an average daily stablecoin settlement amount exceeding $2.5 billion, with a total settlement amount surpassing $2.6 trillion. PYUSD is issued by Paxos, a national trust chartered institution regulated by the Office of the Comptroller of the Currency (OCC).
This move further promotes the institutional adoption of regulated stablecoins on public chains, as Polygon attracts federally compliant capital flows through open monetary infrastructure, providing a scalable path for the integration of traditional finance and on-chain settlement.
Source: Public Information
ABAB AI Insight
Paxos, as the issuer of PYUSD, has long focused on building regulated stablecoin infrastructure and has previously deployed across multiple chains to serve PayPal. The choice to issue natively on Polygon continues its strategy of collaborating with Layer 2 platforms. Polygon has already accumulated a large volume of stablecoin settlements, and this partnership strengthens its positioning in institutional currency services.
On the capital front, Paxos and Polygon leverage the Open Money Stack to mobilize compliant dollar liquidity, aiming to provide institutions with on-chain settlement solutions under federal regulation. This includes integrating deposit, withdrawal, and compliance tools, lowering the barriers for traditional finance to enter public chains and attracting more corporate funds from traditional tracks to on-chain.
Similar to USDC's multi-chain expansion, PYUSD is currently in the expansion phase of regulated stablecoins penetrating high-performance Layer 2, with Polygon's average daily stablecoin settlement amount of over $2.5 billion providing a ready-made high liquidity foundation.
Essentially, this represents a restructuring of the industry chain: regulated stablecoins are reshaping the dollar settlement infrastructure through Layer 2 open stacks, driven by OCC regulatory endorsement combined with public chain scalability, facilitating the shift of capital from the traditional banking system to compliant on-chain tracks, and accelerating the deep integration of traditional finance and blockchain.
ABAB News · Cognitive Laws
- Regulatory compliance is the true moat for the scaling of stablecoins, rather than mere technical performance.
- High daily settlement volume is the strongest magnet for attracting institutions; those who accumulate traffic first will dominate the rules.
- Moving traditional dollar settlements onto public chains, open stacks can reconstruct capital paths better than closed systems.