YouTube Stablecoin Payouts: Transforming Creator Monetization in 2025

This article was first published on Deythere.

YouTube has rolled out an opt-in feature that lets eligible US content creators get paid in PayPal’s dollar-backed stablecoin, PYUSD. So how does this work? 

In reality, YouTube still calculates and reports creator earnings in US dollars, but now they can choose to get paid out in this blockchain-based digital cash instead of a bank transfer. 

This change, often referred to as “YouTube stablecoin payouts”, doesn’t change how creators earn money, just how they get that money.

What are YouTube Stablecoin Payouts all About?

YouTube has slipped in a new option for US-based creators. Eligible creators who earn money on YouTube (whether it’s ads, channel memberships, Super Chats, or otherwise) can now opt in to get their payments as PayPal’s PYUSD. This is a digital “dollar” that’s paid into their PayPal or Venmo account. 

Importantly, it’s completely optional. If creators prefer to stick with the traditional payout methods (bank transfer or a cash balance in dollars), they can do that just the same. 

To be clear, YouTube itself isn’t touching any cryptocurrency here, the new process just lets PayPal turn the payout into PYUSD on creator’s behalf.

How Does the Stablecoin Payout Process Work?

Creators still earn income on YouTube the same way, and the money is still calculated and reported in USD as normal.

YouTube transfers the money (in dollars) over to PayPal’s payout system via Hyperwallet. So far, nothing’s changed.

Instead of crediting that payout as a dollar deposit, PayPal converts the amount into PYUSD and deposits that stablecoin into the creator’s PayPal or Venmo account. This is all handled behind the scenes by PayPal.

Creators  see their balance in PYUSD, which they can then either hold in PayPal, swap back to USD at any time, or even transfer to a supported blockchain wallet if they want to use it on-chain.

The earnings are still pegged to dollars and YouTube’s reporting will always be in USD, so it’s a seamless experience. 

This is a standard payout and not a new investment opportunity. The big difference is that creators get their money in a PYUSD rather than a bank deposit.

Benefits of Stablecoin Payouts for Creators

YouTube’s stablecoin option opens up a whole new world of benefits for creators, especially when it comes to speed and flexibility. Some of the key advantages of stablecoin payouts include:

Stablecoin transfers go 24/7 even on weekends and holidays. This is a far cry compared to traditional bank transfers, which often have to wait for business hours to kick in before being processed. 

Once PayPal converts to PYUSD, the funds are cleared instantly. This could mean that creators get access to their earnings a lot quicker. 

Some processing rules can be applied by PayPal, but once those funds are in stablecoin form, the system can handle settlement much faster and around the clock.

While cash just sits there doing nothing, PYUSD deposited in PayPal can earn some interest. PayPal just introduced a 3.7% annual yield for users who hold PYUSD in their PayPal or Venmo accounts. 

This means some creators might earn a bit of extra cash on funds they’d otherwise leave idle. When earnings come in as PYUSD, creators now have an extra tool to manage their treasuries. They can leave some of their balance in stablecoins if the rates are good or move it to access DeFi services if that’s what they want.

Traditional payouts often get slowed down by a bunch of different parties (banks, currency exchanges, etc),  each one adding their own fees and delays.

A stablecoin payout skips a lot of that hassle. Funds just go from YouTube to PayPal to wallet, with no need to go through all the banks and conversion vendors in between. 

As one analyst put it, for years, creator monetization has been held back by “high fees, slow international payments, currency conversion costs and limited access to traditional banking”. 

But with stablecoin payouts, all that gets simplified. Creators get quicker access to their cash with fewer people taking a cut.

One thing that may put off some creators from dealing with crypto is just how complicated it can be. But with PayPal handling PYUSD, a lot of that complexity gets hidden away. 

As PayPal’s crypto chief May Zabaneh explained, 

“the beauty of what we’ve built is that YouTube doesn’t have to touch crypto, so we can take away the complexity for them”. 

Considerations and Possible Risks

While stablecoin payouts might be useful, there are also some things that creators should really consider:

If creators get paid in PYUSD, a whole new hassle of record-keeping to deal with might surface. The problem is that the earnings are shown in USD but when the PYUSD is converted or spent on the blockchain, that’s when the tax implications might kick in. 

Creators would have to keep a close eye on their PYUSD holdings and transfers which could add to their accounting work load. 

Just because creators are getting paid in PYUSD, it doesn’t mean they won’t have to pay any fees. They still have to deal with PayPal/Hyperwallet taking their standard processing fees out of the payment. 

If the PYUSD is then transferred to a blockchain or exchange, they’ll also have to pay network transaction fees and off-ramp fees on top. 

It really depends on how the PYUSD is used. If it is cashed out straight away to dollars, then the cost might end up being the same as a normal payout. But if it is kept for a while or used in creative ways, they may offset some costs (e.g. by earning interest on it).

Holding stablecoins is different to keeping money in a bank. PYUSD relies on Paxos’s reserves and PayPal’s infrastructure, so there’s a risk that one of those companies could have some issues. 

While PYUSD is regulated, is backed  by real assets and is designed to keep a 1:1 peg with the dollar, it’s not like a bank account that’s FDIC-insured. 

In the US, there have been some new laws proposed to make the rules clearer. Just because PYUSD is currently legal and is issued by regulated companies (Paxos and PayPal) doesn’t mean that future regulations won’t affect how it can be used.

What Industry Experts Think

Analysts think that YouTube’s move to stablecoin payouts is more of a practical step to modernize their payments system, rather than them suddenly jumping on the crypto bandwagon. 

As one report says, YouTube is using blockchain as a way to solve existing payment issues, not as a way to endorse crypto as an investment. In other words, they’re just using blockchain as a more efficient way to move dollars around the world.

Industry veterans are saying that this move aligns with a wider trend in payments. Stablecoins are becoming seen as a way to make moving money around more efficient. 

For example, Visa and Circle have partnered up to do crypto-linked cards, and Stripe recently bought the stablecoin startup, Bridge, for a billion dollars. Practical impact yet to be seen but its potential scale is massive. 

YouTube CEO Neal Mohan said the platform paid out $100 billion to creators over the past four years, roughly $25 billion per year. Even if just a small fraction of that money is turned into stablecoins, it’s likely to lead to a significant volume of stablecoin trades.

Beyond the numbers though, experts are emphasizing the flexibility. By receiving income in PYUSD, creators have the say in whether to keep it in their PayPal balance or cash it out for dollars, or maybe even send it over to one of their other platforms. 

It is all up to the user to decide when and if they want to move that money on-chain. 

Conclusion

The YouTube stablecoin payouts system has come to add more options to how creators get paid. The core way that creators earn money on YouTube through ads and fan support remains the same.

What’s new is that these monies can be taken as a blockchain-backed stablecoin (PYUSD) via PayPal. 

This change could make it easier for creators to get paid faster, to send cash around the world without any of the normal hassle, and even earn some interest on their balances.

On the flip side however, creators will have to think about new issues like tracking PYUSD transactions and being aware of all the fees that come with it. 

Glossary

Stablecoin: This is a type of cryptocurrency that is designed to be stable – i.e. to keep its value steady – by pegging it to a reserve asset (such as the US dollar).

PYUSD (PayPal USD): This is PayPal’s own dollar-backed stablecoin. It can be held in a user’s PayPal account, sent to other people, or moved onto the public blockchain. 

Creator Monetization: This is the process by which content creators earn a living from their content. 

PayPal Hyperwallet: This is a platform that lots of companies use to send out big payouts of cash to their users. 

Digital Wallet: This is basically an online account that can hold money or digital assets like cryptocurrency.

Frequently Asked Questions About Youtube Stablecoin Payouts

What are YouTube stablecoin payouts? 

It’s a new feature that lets eligible US YouTube creators get paid in PayPal’s dollar-backed stablecoin (PYUSD) instead of a regular bank transfer. 

Who can get paid in stablecoins on YouTube? 

It is currently only U.S. creators on the platform who can opt in to get paid in PYUSD . There hasn’t been any announcement from YouTube yet on when they’ll open up the option to other countries.

Do I have to take the stablecoin payment option? 

No, the stablecoin payment is completely optional. Creators who prefer to get their cash in the usual way (i.e. via direct bank transfer or PayPal balance in USD) can carry on as normal. If they want to get paid in PYUSD instead, they’ll have to actively flip the switch and turn it on in their settings.

What are the benefits of getting paid in stablecoins for creators ? 

Some of the main advantages include getting hands on the funds a lot quicker (PYUSD can be settled 24/7) and it’s a lot easier to move money across borders. Also, any PYUSD held in the creator’s PayPal account can earn interest (PayPal says about 3.7% APY). All in all, it gives creators more flexibility in terms of how they can hold or move their earnings.

Are there any downsides to getting paid in stablecoins ? 

Some of the downsides include having to deal with the complexities of cryptocurrency regulations and taxes, then they might have to pay some transaction fees.  

References

Cointelegraph

Compymnts

Compaymentsjournal

Reuters

Cryptoslate