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PayPal, one of the world’s largest payment companies, made a very interesting move today and announced PayPal USD (PYUSD). This stablecoin, protected by Paxos Trust, is backed by US dollar deposits, short-term treasury bonds, and similar cash-equivalent assets. The release of this stablecoin by PayPal sets it apart from its competitors. However, an important detail about this stablecoin has emerged.
According to renowned journalist Colin Wu, PayPal’s cryptocurrency was launched much later than expected. Referring to two individuals closely involved in the matter, Wu emphasized that the payment giant initially partnered with FTX in 2022. The famous figure stated that PYUSD was actually intended to be released in the Solana ecosystem, but the collapse of FTX put an end to the deal.
Due to the setback caused by the collapse of FTX, PYUSD, which was expected to be released in late 2022, faced a long waiting period. Currently, many cryptocurrencies listed on the general blockchain network are considered securities by the SEC, making it unlikely for PYUSD to be listed on other networks.
A Critical Moment for the Crypto Sector
PayPal’s move has actually stirred the industry in many ways. Patrick McHenry, Chairman of the Financial Services Committee of the US House of Representatives, highlighted that if every step is taken correctly, PayPal’s cryptocurrency could become a cornerstone of the 21st-century payment systems. The prominent figure also mentioned that significant steps have been taken by Congress, signaling a green light for the crypto sector.
If such a significant development had been launched a year ago, it could have ended in disappointment due to FTX. This shows how important the criteria of the right time and place are in the crypto sector. However, the crypto market has not yet reacted to this positive news, and the industry is dominated by the color red due to a 0.6% drop in BTC in the last 24 hours.