The stablecoin market's latest momentum story is being written by Paxos. The two flagship tokens of the New York-based blockchain infrastructure firm, Global Dollar (USDG) and PayPal USD (PYUSD), together added $313.6 million in combined market capitalization over a single 30-day window ending in mid-August 2026. Outstanding supply has become one of the clearest gauges of demand in the stablecoin sector, where Tether's USDT and Circle's USDC remain the largest tokens by market capitalization.

USDG is doing the heavy lifting

Of the $313.6 million in combined growth, USDG accounted for roughly $305 million, leaving PYUSD a smaller but still meaningful slice of the expansion.

USDG's total market cap now sits at approximately $3.4 billion, with a circulating supply that mirrors that figure given its 1:1 peg to US dollar assets, including Treasuries and cash equivalents. Global Dollar was launched by Paxos in late 2024 with the backing of a consortium of industry firms and has since positioned itself as a compliance-focused option in the payments-oriented segment of the stablecoin market. Under that consortium model, partners share in the returns generated by USDG's reserves, an arrangement designed to encourage exchanges and fintechs to distribute the token.

A key driver of USDG's growth is its designation as the native stablecoin on Robinhood Chain, the brokerage's Layer 2 network built on Arbitrum technology with a focus on tokenized assets. After that integration went live, USDG's supply on the network climbed into the hundreds of millions within a short period.

The infrastructure advantage Paxos keeps building

Paxos runs a mint-and-redeem model with zero fees. Both USDG and PYUSD are backed by US dollar assets and sit under oversight from the Office of the Comptroller of the Currency, the US regulator that supervises nationally chartered trust banks. Paxos attests its reserves monthly. Both tokens also operate under a clearer US rulebook since the GENIUS Act, signed into law in July 2025, established a federal framework for payment stablecoins requiring 1:1 reserve backing in high-quality liquid assets and monthly public reporting on reserve composition, a disclosure cadence that matches the attestations Paxos already publishes.

Visa's decision to support both USDG and PYUSD for payment settlement, a move the card network made in 2025, added another layer of institutional credibility to the two tokens. Visa has been working with stablecoin settlement on select blockchains since first piloting the capability earlier in the decade.

PYUSD has expanded through PayPal's distribution network into dozens of markets globally, benefiting from being embedded in an existing payment interface that hundreds of millions of users already navigate. The token was introduced in 2023 through the partnership between PayPal and Paxos, making PayPal one of the first major US financial platforms to issue its own stablecoin.

More broadly, competition among stablecoin issuers has centered on reserve transparency, regulatory standing, and integration with established payment rails, the same factors that feature in both tokens' recent expansion. USDT and USDC retain a wide lead in overall scale, which leaves challengers competing on distribution partnerships, compliance posture, and revenue-sharing structures like the one behind USDG.