PayPal launches dollar-backed stablecoin PYUSD for payments
By Delisha Fernandes
Payments giant PayPal has launched a US dollar-denominated stablecoin, PayPal USD (PYUSD), to transform payments in web3 and digitally native environments.
PayPal USD is 100% backed by US dollar deposits, short-term US Treasuries and similar cash equivalents and can be redeemed 1:1 for US dollars and is issued by Paxos Trust Company.
Starting August 7, 2023 and rolling out in the coming weeks, eligible US 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 checkout
- Convert any of PayPal’s supported cryptocurrencies to and from PayPal USD
“The shift toward digital currencies requires a stable instrument that is digitally native and easily connected to fiat currency like the US dollar,” said Dan Schulman, president and CEO of 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 USD will be available to consumers, merchants, and developers to connect fiat and digital currencies seamlessly. As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be available to an already large and growing community of external developers, wallets and web3 applications, can be quickly adopted by exchanges, and will be deployed to power experiences within the PayPal ecosystem.
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.
IBSi Daily News Analysis
October 03, 2023
Digital Identity Verification checks will surpass 70bn by 2024, study showsRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage