PayPal's PYUSD stablecoin has achieved a market capitalization of $3.8 billion by the fourth quarter of 2025, a significant increase from $1.2 billion in September. This growth was fueled by a 113% increase in supply during November and a 150% rise in transactions, reaching 1.8 million. The integration with LayerZero has expanded PYUSD's reach to nine blockchains, including Avalanche, Tron, and Flow, providing access to over 400 million PayPal and Venmo users. Despite its success, PYUSD's 3.7% yield has attracted regulatory scrutiny under the GENIUS Act, which prohibits yield-bearing stablecoins. This regulatory challenge could impact the stablecoin's future growth and adoption.