PayPal announced the debut of its own US-dollar-backed stablecoin, named PayPal USD (PYUSD), on Monday, which it claims may be used for payments and transfers on its platform.
The new cryptocurrency is produced by Paxos Trust business and is entirely backed by US dollar deposits, short-term US treasuries, and comparable assets, according to the business, and may be redeemed 1:1 for US dollars.
PayPal said that beginning today and continuing for several weeks, U.S. PayPal customers who purchase PayPal USD will be able to transfer its new currency between its platform and compatible external wallets, send PYUSD person-to-person transactions, fund purchases with it at checkout, and convert it to and from any other cryptocurrencies supported by PayPal.
