PayPal’s Stablecoin PYUSD Soars 200% Amid Regulatory Headwinds for Tether

PayPal’s USD-backed stablecoin, PYUSD, has experienced explosive growth in just under three months. Data from DeFiLlama shows a dramatic surge in circulation and on-chain activity, propelling its market capitalization to over $3.8 billion, tripling the supply since September 2025. This rapid ascent comes as regulatory scrutiny intensifies for Tether, the leading stablecoin issuer, due to concerns about transparency and risk exposure.