PayPal has made a significant announcement today regarding the introduction of PayPal USD (PYUSD) – a stablecoin denominated in US dollars, operating on the Ethereum blockchain
PayPal has unveiled its latest initiative, the launch of PayPal USD (PYUSD), a stablecoin firmly tied to the US dollar.
This novel stablecoin will be issued through Paxos Trust Co. and will have its value supported by deposits in US dollars, short-term Treasury securities, and similar easily convertible assets. Developed on the Ethereum platform with a focus on digital payments and Web3 capabilities, the coin will soon be accessible to customers based in the United States.
In the forthcoming weeks, eligible US PayPal users who choose to purchase PayPal USD will have the opportunity to:
1. Seamlessly transfer PayPal USD between their PayPal account and compatible external wallets.
2. Initiate person-to-person transactions using PYUSD.
3. Utilize PayPal USD to complete purchases by selecting it as the preferred method during the checkout process.
4. Conveniently convert between any of PayPal’s supported cryptocurrencies and PayPal USD.
Reflecting on this development, Dan Schulman, President, and CEO of PayPal, remarked: “The progression towards digital currencies necessitates a stable instrument that aligns seamlessly with both the digital realm and traditional fiat currencies like the US dollar.
Our dedication to responsible innovation and adherence to regulations, combined with our track record of introducing novel solutions to our customers, positions us well to contribute to the expansion of digital payments via PayPal USD.”
PayPal emphasizes: “As the sole stablecoin integrated within the PayPal network, PayPal USD capitalizes on PayPal’s extensive experience in managing large-scale payments, coupling it with the agility, efficiency, and adaptability inherent to blockchain protocols.
Operating as an ERC-20 token within the Ethereum ecosystem, PayPal USD will readily integrate with the already robust community of external developers, wallets, and web3 applications. This facilitates its straightforward adoption by cryptocurrency exchanges and empowers the creation of unique experiences within the PayPal ecosystem.
“PayPal USD has been tailored to streamline payment processes in virtual environments, facilitate swift value transfers to support interpersonal connections, enable remittances and cross-border payments, provide direct channels for developers and content creators to receive compensation, and encourage the ongoing integration of digital assets into the strategies of major global brands.
“While a considerable portion of existing stablecoin usage is concentrated within web3-specific contexts, PayPal USD will seamlessly align with this ecosystem right from its launch and will soon extend its availability to platforms like Venmo.”
