PayPal Launches Stablecoin
PayPal has announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). The company said PayPal USD (PYUSD) is fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.
It said fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments.
PayPal USD is designed to contribute to the opportunity stablecoins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents.
PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company.
Starting today and rolling out in the coming weeks, eligible U.S. PayPal customers who purchase PayPal USD will be able to transfer PayPal USD between PayPal and compatible external wallets
Customers can send person-to-person payments using PYUSD, fund purchases with PayPal USD by selecting it at checkout. Users can also Convert any of PayPal’s supported cryptocurrencies to and from PayPal USD
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” said Dan Schulman, president and CEO of PayPal.
“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.”
Stablecoins typically have a stable value, usually backed by the U.S. dollar, for example. This avoids the volatility that characterizes digital currencies such as Bitcoin.
PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. In June 2022, PayPal was issued a BitLicense by NYDFS after previously obtaining a conditional BitLicense. #PayPal Launches Stablecoin Naira Devaluation Deepens Economic Crisis in Nigeria
