PYUSD deposits on Morpho Blue see $90M increase in 30 days

PayPal’s stablecoin is quietly becoming a significant force in decentralized lending. PYUSD deposits on Morpho Blue climbed by $90.7 million in the 30 days leading up to August 21, 2026, a jump that reflects both growing confidence in the stablecoin and the broader maturation of on-chain credit markets.

What’s driving the deposit surge

Morpho Blue allows anyone to create permissionless lending markets, meaning no central committee decides which assets qualify or what the terms look like. That structure makes it attractive for curated vault strategies, where asset managers build yield products on top of the underlying protocol. A vault curated by Sentora had accumulated roughly $110 million in deposits as of mid-June 2026, with the overwhelming majority of that held in PYUSD.

Morpho has also worked with Steakhouse Financial to structure lending arrangements that incorporate real-world asset exposure alongside conventional DeFi yield mechanics. PYUSD’s regulatory profile makes it a natural fit for that audience. The stablecoin maintains a 1:1 peg to the US dollar, backed by deposits and Treasury securities, operates under OCC oversight, and undergoes regular audits by KPMG.

Context: PYUSD’s path to Morpho

Paxos Trust Company launched PYUSD for PayPal in August 2023. PYUSD became operational on Morpho Blue in February 2024, making it the first major stablecoin to anchor a lending market on the platform.

Morpho raised $175 million in a funding round in June 2026, a figure that reflects institutional conviction in the on-chain credit thesis.