PayPal joins the stablecoin train
Silicon Valley-based payments firm PayPal announced on Monday, August 7th, that it had launched a US Dollar stablecoin.
In a press release earlier today, PayPal said the stablecoin was launched in conjunction with Paxos.
The stablecoin will be pegged to the US Dollar and made available to PayPal’s customers in the United States over the coming weeks and months.
While commenting on this latest cryptocurrency news, Dan Schulman, president and CEO of PayPal, stated that;
“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. 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.“
PYUSD is an ERC-20 stablecoin
The stablecoin, dubbed, PayPal USD, or PYUSD, will be issued on the Ethereum blockchain. The stablecoin will be fully backed by U.S. dollar deposits, short-term Treasuries and similar cash equivalents.
PayPal has been expanding its efforts in the cryptocurrency space in recent years. In May last year, the company’s Vice President Richard Nash revealed that the payment giant plans to embrace every possible service related to cryptocurrency and blockchain.
PayPal planned to release its stablecoin earlier but reportedly faced a setback. Eligible customers can make transfers using the stablecoin and also make purchases.
Furthermore, PayPal said it would allow users to convert supported cryptocurrencies into or from PYUSD. The company added that;
“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world. Most of the current volume of stablecoins is used in web3-specific environments – PayPal USD will be compatible with that ecosystem from day one and will soon be available on Venmo.”
PayPal believes that issuing the stablecoin on the Ethereum blockchain could become useful to the larger cryptocurrency community