PayPal Launches U.S. Dollar Stablecoin, PayPal USD (PYUSD)
PayPal has unveiled its own U.S. dollar stablecoin, PayPal USD (PYUSD).
Issued by Paxos Trust Company, a regulated firm offering custody and redemption services, PayPal USD can be used for payments in Web 3.0 and other digital environments, soon becoming available to PayPal’s U.S. customers.
The cryptocurrency is built on the Ethereum blockchain as an ERC-20 token.
PayPal, a leading online payment platform, has announced its own U.S. dollar stablecoin, PayPal USD (PYUSD). The new cryptocurrency is backed by U.S. dollar reserves, short-term U.S. Treasuries, and similar cash equivalents and can be used for payments in Web 3.0 and other digital environments.
Beginning today and gradually launching over the next few weeks, eligible U.S.-based PayPal users will have the following benefits when they buy PYUSD:
- Transfer PayPal USD between their PayPal account and compatible external wallets.
- Conduct person-to-person payments using PYUSD.
- Use PayPal USD to fund their purchases by choosing it as a payment option at checkout.
- Convert any of the cryptocurrencies supported by PayPal to PayPal USD and vice versa.
PayPal USD is built as an ERC-20 token on the Ethereum blockchain. With widespread accessibility to external developers, wallets, and Web 3.0 applications, the cryptocurrency fosters frictionless in-experience payments and quick value transfers for various purposes and facilitates digital asset expansion for major global brands. Moreover, it will soon be accessible on the mobile payment service Venmo.
PayPal’s payment stablecoin is a game-changer for the future of finance, and Congress must act now to ensure its success, said Chairman McHenry of the House Financial Services Committee. The Committee has already passed the Clarity for Payment Stablecoins Act which would create a clear and consistent regulatory framework for stablecoin issuers and protect consumers from fraud and abuse. This bill recognizes the vital role that states have played in regulating digital asset firms and builds on successful state models like New York’s. The U.S. cannot afford to fall behind in the global race for digital asset innovation. According to Chairman McHenry, Congress must pass this bill and secure U.S. leadership in the financial system.
Stablecoin Market in Turmoil?
There is a rumor that some Huobi executives have been arrested in China, which explains why traders have been fleeing the exchange, taking out $49 million in stablecoins in the last week.
Meanwhile, Coinbase CEO Brian Armstrong has hinted that Binance has been dumping USDC for another stablecoin. It is a big deal because Binance holds a lot of USDC, and its moves could affect the stablecoin’s market cap.
Binance seems to have a new favorite stablecoin: First Digital USD (FDUSD). FDUSD is a mysterious stablecoin issued by a Hong Kong-based company. It has been gaining popularity in recent weeks after Binance offered several trading pairs for the stablecoin, along with zero trading fee incentives.
The emergence of FDUSD has put pressure on other stablecoins, especially USDT and USDC. USDC’s market cap has plummeted by almost half in the past year, dropping from $44.5 billion to $26 billion.
Amid the uncertainty in the stablecoin market, PayPal’s introduction of a new stablecoin brings optimism.
- PayPal adds crypto functionalities to the mobile app
- PayPal partners with Metamask to support Ethereum transactions
- PayPal now lets users transfer crypto to external wallets
- Where to Spend Crypto: From Non-profits and Donations to Casinos and Luxury
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