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PayPal has launched a new dollar-pegged stablecoin on Ethereum for short-term repositories. The Paxos Trust Company has issued the stablecoin, which is redeemable on a 1:1 basis for US Dollars.
Quick Takes:
- PayPal has introduced Stablecoin, which is backed by US Dollars on Ethereum.
- The PayPal coin can convert PayPal-supported cryptocurrencies to and from PayPal USD.
- As per the announcement, the token will be issued on the Ethereum network as an ERC-20 token.
PayPal’s expansion with the PayPal Stablecoin
PayPal is a well-known online platform to transfer and receive money faster and safer. However, the company is now expanding its presence in the cryptocurrency industry with its own stablecoin called “PayPal USD”. In a recent Press Release, the company revealed that the stablecoin is pegged to the US Dollar and will have a significant impact on the payment infrastructure.
Additionally, US users can use PayPal USD for various purposes, including transfers between PayPal and compatible external wallets. Also, the stablecoin aligns with the existing PayPal efforts to enable crypto payments.
PayPal is also focusing on enabling a smooth conversion between its supported cryptocurrencies and PayPal USD. Also, the stablecoin will not only track the prices of US Dollars but of pounds as well.
Dan Schulman’s take on the PayPal Stablecoin
President and CEO of PayPal, Dan Schulman, emphasized the significance of maintaining a stable digital instrument linked to fiat currency for propelling the expansion of digital payments. Moreover, PayPal USD will create a connection between fiat and digital currencies, effectively bridging the gap between traditional and Web3 domains.
In addition to that, as an ERC-20 token on the Ethereum blockchain, it will be accessible to developers, wallets, fast transfers, international transactions, and support. Making it easy for creators and developers, the stablecoin will align with the Web3 ecosystem and be available on Venmo.
Therefore, PayPal Stablecoin is a notable addition to the cryptocurrency landscape. As digital assets continue to grow, PayPal’s commitment will create new opportunities in the digital payments ecosystem.
Starting next month, Paxos will release monthly reserve reports for PayPal USD, detailing the components of the stablecoin’s reserves. Furthermore, Paxos will also provide public attestations regarding the value of the PayPal USD reserve assets. These attestations will be carried out by an independent accounting firm, adhering to the standards established by the American Institute of Certified Public Accountants (AICPA).
“With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are proving the real-world value of blockchain technology,” Paxos CEO and Co-Founder Charles Cascarilla said in a statement, calling PYUSD “the most significant leap forward for digital assets and the financial industry.”