QTECH — PayPal has announced the launch of a stablecoin, PYUSD, which is denominated in US dollars. This could potentially revolutionize payments in digitally native and web3 environments, as it is fully backed and regulated.
PayPal USD is intended to take advantage of the possibilities that stablecoins offer for transactions and is completely secured by U.S. dollar deposits, short-term U.S. Treasuries, and similar liquid assets. PayPal USD can be exchanged for U.S. dollars at a 1:1 rate and is issued by Paxos Trust Company.
Starting today and rolling out in the coming weeks, eligible U.S. PayPal customers who purchase PayPal USD will be able to:
- Transfer PayPal USD between PayPal and compatible external wallets
- Send person-to-person payments using PYUSD
- Fund purchases with PayPal USD by selecting it at checkout2
- Convert any of PayPal’s supported cryptocurrencies to and from PayPal USD
“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,” said Dan Schulman, president and CEO, PayPal. “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 has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy.
