Tokenization News – PayPal expanded its tokenized stablecoin payments in July 2025, launching a $100 million payment initiative on the Solana blockchain.
The PYUSD stablecoin, pegged to the U.S. dollar, enables merchants to accept tokenized payments for e-commerce and remittances.
With Solana’s 140.6% tokenized asset growth to $418 million, PayPal’s move competes with Visa’s Ethereum-based system, offering low-cost, instant transactions.
This strengthens tokenized payments’ role in Web3 commerce, driving adoption globally.
Tokenized Payments Enhance E-Commerce
PayPal’s PYUSD allows merchants to process tokenized payments with near-zero fees, compared to 2–3% for traditional card payments.
Consumers can send remittances instantly, benefiting migrant workers in Asia and Africa. The $100 million initiative has onboarded 1,000 merchants, processing $5 million in transactions within weeks.
By leveraging tokenized payments, PayPal enhances e-commerce efficiency, aligning with the $25 billion tokenized asset market’s growth in 2025.
Solana’s Scalability for Tokenized Payments
Solana’s high throughput and low-cost transactions make it ideal for PayPal’s tokenized payments.
PYUSD integrates with Web3 wallets, enabling seamless payments across decentralized platforms.
Smart contracts ensure secure, transparent transactions, mirroring JPMorgan’s Kinexys platform.
Solana’s scalability supports PayPal’s ambition to scale tokenized payments globally, positioning it as a leader in blockchain-based commerce alongside Ethereum-based competitors.
Institutional Adoption of Tokenized Stablecoins
PayPal’s compliance with U.S. and EU regulations ensures PYUSD’s legitimacy, fostering trust among merchants.
Institutional adoption, driven by firms like BlackRock exploring stablecoin payments, supports PayPal’s expansion.
There's growing interest in tokenized payments, with Solana’s ecosystem attracting retailers.
PayPal’s initiative could redefine digital payments, challenging traditional systems and driving tokenized payment adoption in 2025.
