cryptopotato.com
Global payments giant PayPal has deepened its footsteps into the crypto industry by launching a dollar-backed stablecoin dubbed PayPal USD ($PYUSD). The move makes PayPal one of the first large U.S. financial companies to launch its own stablecoin despite regulatory uncertainty around crypto assets in the country.
- As a USD-pegged stablecoin, PayPal USD maintains a fixed value to the U.S. dollar, and it will be issued by the popular white-label stablecoin maker Paxos Trust Co.
- Like other USD-pegged stablecoins, $PYUSD is backed by USD deposits, short-term treasuries, and other cash equivalents, according to a Fortune report on Monday.
- For now, users can only use $PYUSD for crypto and web3-related activities, such as in-game payments and exchanges with other crypto assets. But in the long run, PayPal intends to use $PYUSD to facilitate low-cost payments and transfers among users and merchants worldwide.
- The company said it would gradually roll out the new digital currency to customers in the U.S.
- Dan Schulman, president and CEO of PayPal, believes the move is part of the company’s efforts to cement its position in the digital payments industry, as there is a need for a stable asset to bridge the gap between the traditional and digital worlds.
- “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,” Schulman said in a statement.
- The company has already added support for other cryptocurrencies, such as bitcoin and ether, since 2020, and users can swap $PYUSD for all supported digital assets on the platform.