PayPal, a major player in payment processing, introduced cryptocurrency payments in 2020 and has since been heavily involved in the market.
On August 7, the American company PayPal introduced a fresh stablecoin named PayPal USD (PYUSD).
The U.S. dollar-pegged stablecoin will be released by Paxos Trust Co. and will be entirely backed by U.S. dollar deposits, short-term Treasury securities, and other cash equivalents. The company says it’s based on Ethereum and “designed for digital payments and Web3,” and that American customers will soon be able to purchase it.
Exchanges, Web3 applications, and wallets that accept PayPal USD are all cryptographic platforms. PayPal, the source
In addition to being transferable between PayPal and Venmo, PYUSD will always be redeemable for US dollars and be able to be traded for other cryptocurrencies on PayPal. According to the firm, it will soon be accepted as a form of payment for many different kinds of goods.
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After allowing cryptocurrency payments on its platform in 2020, PayPal began working toward being a major player in the crypto payment space. The launch of a stablecoin could speed up that process.
In addition to permitting payments in the assets, PayPal has over 350 million active users and already allows customers in the United States and the United Kingdom to buy, sell, and hold Bitcoin BTC tickers down $28,938, Ether ETH tickers down $1,826 and Litecoin LTC tickers down $82.07.
Dan Schulman, the CEO of PayPal, anticipates that the new stablecoin will be integrated into the wider payments system. The business initially disclosed its intention to introduce a stablecoin for cryptocurrencies in January 2022, promising to collaborate closely with pertinent regulators.
The significance of blockchain technology in the real world is being demonstrated by PayPal and Paxos with the introduction of the first stablecoin by a major financial institution. Paxos is happy to have enabled PayPal USD, which represents the biggest advancement for digital assets and the financial sector.
According to the company, there is a desire for an alternative stablecoin to what is currently on the market because the legislative climate surrounding stablecoins in the U.S. is allegedly “progressing toward more clarity.”
With a $126 billion circulating supply, the market for crypto stablecoins is dominated by Tether’s USDT USDT $1 (which has a $86.5 billion market cap), followed by Circle’s USD Coin USDC $1 (which has a $26 billion market cap), and a few others. While American lawmakers are now debating a bipartisan stablecoin bill, many stablecoins have recently encountered regulatory obstacles there.
