PayPal's stablecoin scale will reach 4 billion dollars, driven by DeFi protocols

According to DL News, the circulation of PayPal's stablecoin PYUSD has surged by 224% since September, surpassing $3.8 billion, making it the sixth largest stablecoin.

The DeFi protocol Ethena has become the largest holder of PYUSD, holding $1.2 billion through the custodian Copper. PayPal is providing incentives on the decentralized exchange Curve Finance by partnering with liquidity management company Sentora, and subsidizing user yields for DeFi protocols.

The Solana lending protocol Kamino currently offers nearly 6% annualized yield for lending PYUSD, partially subsidized by PayPal. Over the past three months, the scale of PYUSD on Solana has increased from $250 million to over $1 billion.

U.S. Treasury Secretary Scott Bessen expects the stablecoin market to reach $3 trillion by 2030.