PayPal, a leading global online payments company, has recently introduced its stablecoin called PayPal USD (PYUSD). This strategic move attempts to improve its cryptocurrency offerings and provide customers with additional options.
#PayPal launches a stablecoin to enable crypto payments.
— Bitcoin Sistemi EN (@btcsistemiEN) August 7, 2023
Moreover, PYUSD represents the Paxos Trust Co., a regulated trust company and custodian of digital assets. It operates under the full backing of US dollar deposits, short-term Treasuries, and similar cash equivalents.
PayPal’s stated in a formal statement:
Stablecoins that are completely secured and regulated can transform payments in web3 and digitally native environments. To take advantage of this emerging possibility, the introduction of USD (PYUSD), a stablecoin valued in US dollars, was announced today.
PYUSD enhances the payment capabilities of stablecoins by providing a secure and convenient option. 100% US dollar deposits, short-term US Treasury bonds, and similar cash equivalents back it. Furthermore, the Paxos Trust Company, a trusted entity, issues PayPal USD, and individuals can redeem these PayPal USD at a 1:1 rate against US dollars.
Introducing PayPal USD: Connecting Traditional & Crypto Transactions
A new rollout will occur over the next few weeks for specific US PYUSD customers. As part of this exciting update, those who purchase PayPal USD will gain access to a range of benefits and capabilities.
- You can transfer PYUSD between PayPal and suitable external wallets.
- One person may use PYUSD to send payments to another.
- Pay with PYUSD by choosing it at the checkout.
- When checking out, select PYUSD as your payment method.
- Convert any of the cryptocurrencies supported by PayPal to and from PYUSD.
Moreover, PayPal President and CEO Dan Schulman stated that the shift towards digital currencies necessitates a reliable tool capable of seamlessly linking to local and fiat currencies like the US dollar.
They responsibly innovate, comply, and contribute to PYUSD’s growth, building a solid foundation for digital payments. Additionally, With a track record of innovative experiences, we hold expertise in this domain, ensuring customer satisfaction.
Consumers, merchants, and developers can link traditional and digital currencies using PYUSD effortlessly. Ethereum issued ERC-20; devs, wallets, web3 apps adopt. The community and integration actively foster growth using PYUSD. Exchanges have quickly embraced it, powering experiences within the PayPal ecosystem.
Deposits of US dollars, US Treasury bonds, and equivalent cash fully support PayPal’s reserves in USD. Users can buy or sell PYUSD at a steady rate of $1.00 per unit through the PayPal platform.