PayPal stock has moved into a bull market, rising by over 26% from its lowest point this month. 

PayPal USD stablecoin’s market cap

PayPal USD (PYUSD), the company’s stablecoin launched in August 2023, has been performing well.

Data shows that its market cap has jumped sharply in the past few weeks, crossing the psychological level of $907 million on Aug. 21. This marks significant growth for a stablecoin whose market cap started the year at $264 million. 

Stablecoin issuers like PayPal make money in two main ways: interest rates and transaction costs. With U.S. interest rates between 5.25% and 5.5%, PayPal could earn over $50 million annually in interest. 

Tether (USDT), the biggest stablecoin, with over $117 billion in assets, made a quarterly profit of over $4.5 …