A new stablecoin termed PayPal USD (PYUSD) was introduced on August 7 by the American financial technology business PayPal.
The U.S. dollar-pegged stablecoin will be issued by Paxos Trust Co. and entirely backed by U.S. dollar deposits, short-term Treasurys, and comparable cash equivalents. According to the company, it is based on Ethereum and “designed for digital payments and Web3,” and clients in the United States will soon be able to purchase it.
PYUSD will always be converted into US dollars, tradable on PayPal for other cryptocurrencies, and transferrable between PayPal and Venmo. According to the business, it will soon be accepted as a form of payment for a variety of items.
The release of a stablecoin by PayPal might hasten that endeavour, which the corporation began in 2020 after allowing cryptocurrency payments on its network.
PayPal has over 350 million active users and already allows users in the United States and the United Kingdom to buy, trade, and hold Bitcoin, Ether, Bitcoin Cash, and Litecoin in addition to facilitating payments in these digital assets.
The new stablecoin might integrate into the whole payments system, according to PayPal CEO Dan Schulman. Initially announcing that it would closely collaborate with appropriate regulators, the company stated that its goal was to introduce a crypto stablecoin in January 2022.
Collect this article as PayPal launches PYUSD stablecoin for payment from the Cointelegraph.
PayPal will be the first stablecoin introduced by a significant payment processor, despite there being many stablecoins accessible in the cryptocurrency market.
According to the business, there is a desire for an alternative stablecoin to what is currently on the market since the legislative climate surrounding stablecoins in the U.S. is allegedly “progressing towards more clarity.”
The market for cryptocurrency stablecoins has a $126 billion circulating supply, with the majority of coins being issued by Circle’s USD Coin and Tether’s USDT, which have market caps of $26 billion and $86.5 billion respectively. The United States, where legislators are presently debating a bipartisan stablecoin law, has recently seen a rise in regulatory obstacles for numerous stablecoins.
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