PayPal has just launched its own stablecoin: PayPal USD (PYUSD). This is a huge step for the company and the crypto world, as it shows how a major U.S. financial institution is embracing the potential of digital currencies. 🎉
Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023
But you might be wondering: what is a stablecoin and why is it important?
A stablecoin is a kind of cryptocurrency that is tied to a real-world currency or asset, such as the U.S. dollar or gold. The main benefit of stablecoins is that they offer the advantages of cryptocurrencies, such as speed, low cost, and global access, without the downside of price swings and risk.
PayPal USD is a stablecoin based on Ethereum, a popular blockchain platform that supports many kinds of decentralized applications. PayPal USD is linked to the U.S. dollar and is issued by Paxos Trust Company, a regulated entity that also handles PayPal’s crypto services.
PayPal USD is backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents, which means that you can exchange it for dollars anytime.
PayPal USD has many uses and benefits for both PayPal users and the wider crypto community. Here are some of them:
In-experience payments: You can use PayPal USD to pay for things in virtual environments, such as games, social media, and online shopping platforms. You can easily buy, sell, and trade goods and services using PayPal USD without leaving your favorite apps or websites.
Person-to-person transfers: You can use PayPal USD to send money to your friends and family, whether they are in the same country or across the world. You can enjoy fast, secure, and low-cost transfers using PayPal USD, without worrying about exchange rates or middlemen.
Remittances and international payments: You can use PayPal USD to send remittances or make international payments with ease and efficiency. You can leverage PayPal’s global network and reach to access more than 200 markets and 25 currencies using PayPal USD.
Web3 integration: You can use PayPal USD with the Ethereum blockchain and the web3 ecosystem, which consists of various decentralized applications (dApps), protocols, and platforms that run on top of it. You can transfer PayPal USD between PayPal and compatible external wallets, as well as interact with different web3 applications using PayPal USD.
Crypto conversion: You can use PayPal USD to convert any of PayPal’s supported cryptocurrencies to and from PYUSD. You can also fund purchases with PYUSD by selecting it at checkout. PayPal will tell you the exchange rate and any fees for each transaction involving crypto conversion.
PayPal USD is rolling out to U.S. customers gradually. It will soon be available on Venmo, PayPal’s popular payments app that has over 70 million users. Venmo users will be able to send their token holdings between a PayPal and a Venmo wallet.
The launch of PayPal’s stablecoin is a game-changer for the digital payment industry and the crypto sector. It creates new revenue streams for the company and new opportunities for its customers. It also shows PayPal’s commitment to responsible innovation and compliance, as well as its track record delivering new experiences to its customers.
With its stablecoin PYUSD, PayPal has laid the foundation necessary to contribute to the growth of digital payments through crypto.