PayPal is making major moves in the crypto industry.
In a groundbreaking move, PayPal, a well-known American online payment giant, introduced its native crypto stablecoin PayPal USD (PYUSD).
Unveiled on August 7th, PYUSD will be issued by Paxos Trust Co. and backed by assets such as the US dollar, short-term Treasury bills, and other cash-like instruments.
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According to the announcement, the stablecoin is “designed for digital payments and Web3” and was built on the Ethereum blockchain.
The new stablecoin can be exchanged for the US dollar, as well as other cryptocurrencies within the PayPal ecosystem. The company is optimistic about PYUSD becoming a robust payment method for diverse purchases.
Moreover, in the announcement, the firm revealed that PYUSD will be also used for seamless transfers between PayPal and its subsidiary, Venmo.
Offering insights on this development, Paxos CEO Charles Cascarilla stated:
With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are proving the real-world value of blockchain technology. PayPal USD is the most significant leap forward for digital assets and the financial industry and Paxos is proud to enable this transformative product.
In the announcement, PayPal highlighted that the stablecoin will be soon unavailable to its American users.
Embracing the crypto world isn’t a new endeavor for PayPal. This intention materialized in 2020 when they incorporated cryptocurrency payments. This new stablecoin offering might boost their aspirations to dominate the cryptocurrency payment landscape.
Having a user base exceeding 350 million, PayPal allows its users in the United States and the United Kingdom to purchase, trade, and store cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
With PayPal’s latest foray into stablecoins, the fintech giant reiterates its commitment to cryptocurrency, potentially setting new standards for digital assets in the mainstream financial world.