Paxos has announced that it will be issuing PayPal USD (PYUSD) natively on the Polygon chain, continuing its strategy of collaborating with Layer 2 platforms.
This move is part of Paxos' effort to build regulated stablecoin infrastructure and follows its previous deployments across multiple chains to serve PayPal. The choice to issue natively on Polygon was likely influenced by the platform's existing high volume of stablecoin settlements, which has reached over $2.5 billion in average daily stablecoin settlement amount.
Paxos and Polygon are leveraging 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.
This partnership 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. This shift is accelerating the deep integration of traditional finance and blockchain, as institutions begin to move traditional dollar settlements onto public chains.