PayPal, a giant in the payment processing industry, has maintained an active involvement in the cryptocurrency industry ever since it began accepting cryptocurrency payments in the year 2020. The American financial technology company announced the launch of its newest stablecoin on August 7, and it is going by the name PayPal USD (PYUSD).
A stable coin that is tied to the value of the United States dollar will be issued by Paxos Trust Company. This coin will have complete backing from U.S. dollar deposits, short-term Treasury securities, and other cash equivalents.
The PYUSD stablecoin is based on the Ethereum blockchain and was developed with digital payments and Web3 apps in mind. Its name comes from a combination of the words “proof of work” and “unit of currency.” The company has it on their agenda to make it available to customers in the United States as soon as possible.
On the PayPal platform, users can convert PYUSD into U.S. dollars in a straightforward manner at any time, and they can also trade it for other cryptocurrencies.
Additionally, it will be possible to transfer it between Venmo and PayPal. The business has plans to make PYUSD available as a viable payment method for a variety of purchases in the near future.
Where does it stand?
PayPal is taking a significant step toward establishing itself as a major player in the cryptocurrency payment space by launching its own stablecoin. This move marks a significant advancement for the company. This move comes after they launched support for cryptocurrency transactions on the platform in the year 2020.
At the moment, PayPal has an impressive user base consisting of more than 350 million active users. It already makes it possible for customers in the United States and the United Kingdom to buy, sell, and hold Bitcoin, Ether, and Litecoin. It also makes it possible for them to make payments using these digital assets.
The Chief Executive Officer of PayPal, Dan Schulman, has expressed his hope that the newly developed stablecoin will become an essential component of the broader payments infrastructure. The business made an official announcement regarding its intention to launch a cryptocurrency stablecoin in the month of January 2022, and it emphasized its dedication to working closely with regulators throughout the entire process.
PayPal’s stablecoin stands out already!
Even though there are already a number of stablecoins available on the market, a significant payment processor will introduce PayPal’s stablecoin, making it notable as the first of its kind. The Chief Executive Officer of Paxos, Charles Cascarilla, emphasized the significance of this milestone by stating that it demonstrates the tangible value that blockchain technology can provide in the real world. He expressed his pride in Paxos’ contribution to the development of this game-changing product, which is the PayPal USD.
PayPal stated that the regulatory landscape for stablecoins in the United States is gradually becoming more clear and is continuing to improve. As a direct result of this, there is a growing demand for an alternative stablecoin solution in addition to the options that are currently available on the market.