Key takeaways:
- The United States-based company PayPal introduced the PayPal USD (PYUSD) cryptocurrency stablecoin.
- PYUSD will be available to users, businesses, and developers and will be issued on the Ethereum Blockchain.
On August 7, the United States-based company PayPal introduced the PayPal USD (PYUSD) cryptocurrency stablecoin.
Paxos Trust Co. will distribute the new stablecoin, which will be fully backed by deposits in US dollars, short-term US Treasury securities, and other cash equivalents. The company announced that American clients would soon be able to purchase the new stablecoin.
On PayPal, PYUSD can be traded for other cryptocurrencies and redeemed for dollars at all times. According to the payment processor, the brand-new stablecoin will soon be accessible as a means of payment for various goods and will be transferable between PayPal and Venmo.
PYUSD will be available to users, businesses, and developers and will be issued on the Ethereum Blockchain. Exchanges can quickly embrace PYUSD, according to Paypal’s blog post:
“As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be available to an already large and growing community of external developers, wallets and web3 applications, can be easily adopted by exchanges, and will be deployed to power experiences within the PayPal ecosystem.”
The introduction of a stablecoin may advance the company’s effort to establish itself as the industry leader in cryptocurrency payments, a goal it set for itself in 2020 after enabling cryptocurrency payments on its platform.
Dan Schulman, the CEO of PayPal, anticipates that the new stablecoin will be integrated into the broader payments system. Schulman stated:
“Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Users will reportedly be able to exchange the dollar-denominated tokens for cash or other assets on PayPal’s platform thanks to its offering, which is anticipated to function in conjunction with its existing cryptocurrency services.
Although there are many stablecoins on the cryptocurrency market, PayPal will be the first one introduced by a significant player in the payments industry.
In January 2022, the corporation announced its intention to establish a crypto stablecoin, stating that it would do so while closely collaborating with the appropriate regulators.
