PayPal Launches PYUSD Stablecoin
In a significant move aimed at transforming payments in web3 and digitally native environments, PayPal (NASDAQ: PYPL) has announced the launch of its fully backed and regulated stablecoin, PayPal USD (PYUSD). This new stablecoin is denominated in U.S. dollars and designed to capitalize on the potential of stablecoins in revolutionizing the digital payments landscape.
Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023
PYUSD: Fully Backed Stablecoin
Unlike other cryptocurrencies, PayPal USD is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents, providing it with a stable and reliable value. This backing ensures that each PYUSD can be redeemed 1:1 for U.S. dollars, instilling confidence and trust in its users.
The stablecoin will enable eligible U.S. PayPal customers to perform various transactions. They can transfer PayPal USD between PayPal and compatible external wallets, conduct person-to-person payments using PYUSD, fund purchases with PayPal USD by selecting it at checkout, and convert any of PayPal’s supported cryptocurrencies to and from PayPal USD.
Dan Schulman, President, and CEO of PayPal emphasized the need for a stable instrument that seamlessly connects digital currencies with fiat currency like the U.S. dollar. He stated, “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.”
Bridge to Web3
By building the bridge between fiat and web3 for consumers, merchants, and developers, PayPal USD brings together PayPal’s decades-long experience in payments with the speed, cost efficiency, and programmability of blockchain protocols. As an ERC-20 token issued on the Ethereum blockchain, PYUSD opens up to a vast community of external developers, wallets, and web3 applications, making it easily adoptable by exchanges and enabling its use within the PayPal ecosystem.
PayPal USD aims to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value, support remittances and international payments, empower developers and creators, and promote the expansion of digital assets by major global brands. The stablecoin is compatible with web3-specific environments from its launch and will soon be available on Venmo.
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One of the critical aspects of PayPal USD’s credibility lies in its regulation and transparency. Issued by Paxos Trust Company, a fully licensed limited purpose trust company under the regulatory oversight of the New York State Department of Financial Services, the reserves for PayPal USD are meticulously backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents.
