PayPal Introduces USD Stablecoin
PayPal unveiled a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), designed for web3 payments and backed by U.S. assets.
The Deets
- PayPal USD is issued by Paxos Trust Company.
- The stablecoin is 100% backed by U.S. dollar deposits, U.S Treasuries, and equivalent assets.
- It's tailored for digital payments, Web3, and popular exchanges.
- Launch begins today, with further U.S. rollout (except Hawaii) soon.
The Bulk
PayPal, a leader in digital payments, dives deeper into the crypto space with its newly introduced stablecoin, PayPal USD (PYUSD). It's designed to capitalize on the burgeoning potential of stablecoins in the web3 domain.
This currency is redeemable 1:1 for U.S. dollars and stands out for its backing - a mix of U.S. dollar deposits, short-term U.S Treasuries, and equivalent cash assets. Issued by the reputable Paxos Trust Company, PYUSD promises reliability and credibility.
As for functionality, PYUSD is more than just a stablecoin. It's tailored to facilitate person-to-person payments, allow transfers between PayPal and compatible wallets, and support conversions between PayPal's supported cryptocurrencies.
🖼️ The Big Picture
With PayPal's expansive user base and reputation, PYUSD could become a pivotal link bridging traditional finance with the decentralized web3 ecosystem, enhancing web3 payment systems.
🎤 Founder Feedback
The shift toward digital currencies necessitates a stable instrument that seamlessly connects to fiat currency like the U.S. dollar. Our dedication to responsible innovation and our history of delivering novel experiences fortify our contribution to the evolution of digital payments through PayPal USD.Dan Schulman, President and CEO, PayPal
📊 By the Numbers
PayPal currently has 377 million active user accounts (as of Q4 2020).
🧐 Wait, What?
Wondering why stablecoins matter? They combine the best of both worlds: the stability of traditional currencies and the flexibility of cryptocurrencies. PayPal USD, backed by U.S. assets, promises to bring this synergy to web3 payments.
🔜 What's Next?
Users can anticipate enhanced digital payment experiences with PYUSD's integration into Venmo and expect public monthly Reserve Reports from Paxos starting September 2023, providing further transparency.
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