YouTube has allowed creators in the United States to receive payments using PYUSD stablecoin.

YouTube has permitted American creators to accept PayPal’s stablecoin PYUSD payments, according to Mae Zabane, PayPal’s crypto head. The feature is now live but currently limited to US users. PYUSD was launched in mid-2023, with its market cap skyrocketing from about $500 million at the start of the year to currently $3.9 billion, nearly an 8-fold growth.

YouTube’s 180-Degree Attitude Shift: From Shadow Bans to Stablecoin Acceptance

The opening of PYUSD by YouTube marks a historic shift in the platform’s attitude towards cryptocurrencies. After experiencing a period of “shadow banning” of crypto content, as digital assets gradually become mainstream, YouTube may be changing its stance on cryptocurrencies. The so-called “shadow ban” refers to measures taken between 2018 and 2020, including content suppression, takedowns, and account bans for crypto-related videos, with many crypto YouTubers’ videos deleted or limited without warning.

This hostile policy was driven by concerns over crypto scams and violations. During that time, ICO scams were rampant, and many malicious projects promoted themselves on YouTube, causing significant investor losses. To mitigate legal risks, YouTube chose to broadly restrict all crypto content. However, this approach sparked strong backlash from the crypto community, leading to the suppression of legitimate educational and analytical content.

Today, YouTube has not only lifted restrictions on crypto content but also further allows creators to accept stablecoin payments. This attitude shift reflects the broader trend of cryptocurrencies moving from the fringes to the mainstream. When giants like BlackRock and Fidelity launch Bitcoin ETFs, and when the US Congress discusses including crypto in 401(k) retirement plans, YouTube, as the world’s largest video platform, can no longer exclude cryptocurrencies.

PayPal has a long-standing partnership with YouTube, allowing users to make payments via its services and to facilitate creator AdSense payouts. Integrating PYUSD is simply adding a stablecoin option to existing payment channels, with relatively low technical difficulty. However, its significance is more symbolic than technical — it signifies that mainstream payment and content platforms officially recognize stablecoins as legitimate payment tools.

Three Drivers Behind PYUSD’s Market Cap Surge from 5 Billion to 39 Billion

Launched in mid-2023, PYUSD’s market cap surged from about $500 million at the start of the year to $3.9 billion, according to CoinGecko data, nearly an 8-fold increase. This explosive growth was not linear but showed a stepwise leap after key integrations. Most growth occurred after early September when the market cap was around $1 billion. That month, PYUSD integrated with Spark’s lending markets and Stable (a blockchain for institutional-grade stablecoins).

Three Major Catalysts for PYUSD’s Market Cap Explosion

Spark Lending Integration (September): As a lending protocol within the MakerDAO ecosystem, Spark accepts PYUSD as collateral, unlocking DeFi application scenarios.

Stable Partnership (September): Institutional-grade stablecoin infrastructure enables PYUSD to serve large enterprises and financial institutions.

YouTube Creator Payments (December): Opens the creator market, with hundreds of millions of creators becoming potential users.

The common theme of these three integrations is “practicality.” PYUSD is no longer just a speculative tool but is genuinely used for lending, settlement, and payments as a functional stablecoin. When stablecoins have real use cases, demand shifts from speculation to structural needs, making market cap growth more sustainable.

Over the past year, as mainstream companies, institutions, and governments have begun integrating stablecoin assets with traditional finance, the stablecoin market has experienced explosive growth. Visa has trialed stablecoin payments for US businesses using fiat currencies. State Street and Galaxy plan to launch tokenized liquidity funds on Solana. These developments indicate that stablecoins are penetrating from crypto-native scenarios into mainstream finance.

As one of the largest online payment platforms globally, PayPal has over 400 million active users. When PayPal launches its own stablecoin and integrates it into platforms like YouTube, the reach of stablecoins expands exponentially. Unlike USDT and USDC, which mainly circulate on crypto exchanges, PYUSD’s advantage lies in seamless integration into PayPal’s ecosystem. Users don’t need to understand blockchain or wallets to use stablecoins.

Revolutionary Significance of YouTube Creator Payments

Allowing creators to receive payments in PYUSD stablecoin is revolutionary because it introduces crypto payments into the creator economy. YouTube has over 100 million creators, with millions earning revenue through AdSense, memberships, and Super Chats. These creators are worldwide, and traditional bank transfers often involve high fees, long settlement times, and currency exchange losses.

Stablecoin payments solve these issues perfectly. PYUSD cross-border transfers can be completed within minutes, with fees typically below $1, and no exchange rate risk (pegged to USD). For creators in developing countries, this advantage is even more significant. For example, a YouTuber in the Philippines or India could lose 5% to 10% on transfer fees and currency conversions when receiving USD via traditional banks. Using PYUSD, they can nearly receive full amounts.

Mae Zabane emphasized that “YouTube doesn’t need to touch crypto” — this is the key design. On a technical level, when YouTube pays creators, the system automatically calls PayPal’s API to execute stablecoin transfers, without YouTube holding or managing crypto itself. This “black box” approach reduces compliance risks and technical burdens, making YouTube more willing to adopt stablecoin payments.

For creators, receiving PYUSD is equally simple. They only need to enable PYUSD in their PayPal account. When YouTube pays, funds are automatically credited in PYUSD. Creators can choose to convert PYUSD to USD for withdrawal or hold it for other payments. This flexibility makes stablecoins accessible beyond crypto-native users.

Given YouTube’s enormous scale, this move could also promote stablecoin adoption. If just 1% of YouTube creators choose to receive payments in PYUSD, that’s 1 million new users. As they use and understand stablecoins, they may further apply them to other payment scenarios, creating network effects.

Stablecoin War Escalates: PYUSD Challenges USDT and USDC

YouTube’s integration gives PYUSD a competitive edge in the stablecoin race. The market is currently dominated by USDT (market cap about $140 billion) and USDC (about $40 billion). PYUSD, with a market cap of $3.9 billion, ranks third or fourth. However, USDT and USDC mainly circulate on crypto exchanges and DeFi protocols, lacking direct connection to mainstream consumer scenarios.

PYUSD’s strategy is “payment-first,” not “trading-first.” By integrating with YouTube, Venmo (a PayPal subsidiary), and other mainstream platforms, PYUSD can reach ordinary users who do not use crypto exchanges. This differentiation could enable PYUSD to establish dominance in retail payments even if its exchange market share remains below USDT and USDC.

Over the past year, the stablecoin market has seen explosive growth, with major companies, institutions, and governments integrating stablecoins with traditional finance. Visa has trialed stablecoin payments for US businesses using fiat currencies, indicating that credit card giants are also entering the stablecoin space. State Street and Galaxy plan to launch tokenized liquidity funds on Solana, accelerating institutional adoption. Under this trend, PYUSD, leveraging PayPal’s brand and channels, has the potential to breakthrough both at the institutional level and among consumers.

Mae Zabane’s statements show PayPal is actively promoting PYUSD’s adoption scenarios. YouTube is just the beginning; future integrations could include PayPal’s merchant services, cross-border remittances, and investment products. If PYUSD can replicate PayPal’s success in traditional payments and become a daily payment tool for hundreds of millions of users worldwide, its market cap could surpass hundreds of billions or even trillions of dollars.

However, PYUSD also faces challenges. Regulatory uncertainty remains. Although PayPal’s issuance of a stablecoin as a regulated financial institution is relatively compliant, global regulatory standards are still being developed. Technical risks are also present; the 1:1 peg depends on reserve management by the issuer. If reserves face issues, a depegging crisis could occur.