PayPal has launched PYUSD, an ERC-20 stablecoin issued on Ethereum.
PayPal has launched its stablecoin, called PayPal USD (PYUSD), an ERC-20 token
backed by the US dollar. This makes PayPal the first major financial company to launch a stablecoin.
The launch of PYUSD is part of PayPal's efforts to increase its crypto offerings and make it more accessible to its customers.
Dan Schulman, president and CEO of PayPal, said:
"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."
PayPal USD (PYUSD) is expected to be used for payments and transfers. The stablecoin will be available to PayPal's US customers initially.
Issued by Paxos Trust Co., PYUSD will be pegged to the US dollar, and fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents.
According to Paypal's press release
, eligible PayPal users will be able to purchase PayPal USD and enjoy features such as transferring funds between PayPal and compatible external wallets, sending person-to-person payments using PYUSD, funding purchases with PayPal USD at checkout, and converting supported cryptocurrencies to and from PayPal USD.
PayPal has made a huge advancement in the cryptocurrency world with the introduction of PYUSD. With over hundred of millions of users across 200 markets, this move has the potential to inspire more financial institutions to adopt a similar strategy. However, it remains to be seen whether PYUSD will be widely adopted by PayPal's customers.
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