coinfomania.com
Global fintech company PayPal announced on Monday the launch of its dedicated stablecoin dubbed PayPal USD (PYUSD). The stablecoin is being issued by blockchain company Paxos Trust Company.
PayPal Unveils PYUSD Stablecoin
The stablecoin is launched on the Ethereum network. It is fully backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents. The asset is also redeemable 1:1 for the U.S. dollar. The new product will be available to PayPal clients around the globe, including the U.S.
The fintech company stated that PYUSD would be used to facilitate trades, fund transfers, and in-app conversions from stablecoin to other cryptocurrencies supported by PayPal.
“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world,” the company wrote in a press release.
PayPal has chosen Paxos Trust Company to issue the PYUSD stablecoin. Recall that Paxos was in a legal tussle with U.S. financial regulators earlier this year over the issuance of the Binance-branded stablecoin, BUSD. One of the regulators argued that BUSD was security. Another regulator ordered Paxos to stop issuing the BUSD stablecoin.
PayPal, on its part, has been working on rolling out a stablecoin for more than a year. However, it halted the plan in February while Paxos was being scrutinized by U.S. financial watchdogs. At the time, the company revealed that it would resume its stablecoin journey in compliance with a clear regulatory framework.
PayPal Deepens Crypto Adoption
Since 2020, PayPal has positioned itself at the frontier with other fintech companies adopting cryptocurrencies into their ecosystem.
Through its mobile payment system Venmo, PayPal introduces investors to the crypto industry. Users can buy and sell various crypto assets, such as Bitcoin, Ethereum, Bitcoin, and Bitcoin Cash. The latest PYUSD stablecoin will be available for use on the Venmo app in the future.
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