Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
On August 7, American fintech firm PayPal introduced a new stablecoin named PayPal USD (PYUSD).
This stablecoin, pegged to the U.S. dollar, will be issued by Paxos Trust Co. and is fully supported by U.S. dollar deposits, short-term Treasurys, and similar cash equivalents. Built on the Ethereum blockchain, it is “designed for digital payments and Web3,” with the company indicating that it will soon be accessible to customers in the United States.
Related Posts
PayPal USD compatibility with crypto exchanges, Web3 apps and crypto wallets. Source: PayPal
PYUSD will always be redeemable for U.S. dollars, can be traded for other cryptocurrencies on PayPal, and will be transferable between PayPal and Venmo. The company asserts that it will soon serve as a payment option for various transactions.
The introduction of a stablecoin by PayPal could enhance its ambitions to become a significant player in crypto payments, a goal the company initiated in 2020 by allowing crypto transactions on its platform.
PayPal has over 350 million active users and currently allows individuals in the U.S. and the United Kingdom to buy, sell, and hold Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), while also facilitating payments in these assets.
PayPal CEO Dan Schulman envisions the new stablecoin becoming integrated into the broader payments infrastructure. The company initially announced its intention to launch a crypto stablecoin in January 2022, stating it would collaborate closely with relevant regulators.
Although there are numerous stablecoins in the crypto market, PayPal will be the first to be launched by a prominent payment processor. Paxos CEO Charles Cascarilla remarked to Cointelegraph:
“With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are demonstrating the real-world value of blockchain technology. PayPal USD represents a significant advancement for digital assets and the financial sector, and Paxos is proud to support this transformative product.”
The company noted that the regulatory landscape surrounding stablecoins in the U.S. is gradually “progressing toward more clarity,” indicating a demand for an alternative stablecoin compared to those currently available in the market.
Related: US Treasury says it must ‘modernize and adapt’ to digital currencies
The crypto stablecoin market has a circulating supply of $126 billion, primarily led by Tether-issued USDT (USDT) (which has an $86.5 billion market cap) and followed by Circle-issued USD Coin (USDC) (with a $26 billion market cap) among others. However, many stablecoins have recently encountered regulatory challenges in the United States, where lawmakers are currently deliberating a bipartisan stablecoin bill.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Yuan stablecoin team arrested, WeChat’s new Bitcoin prices, HK crypto rules: Asia Express
