PayPal has launched PYUSD, an ERC-20 stablecoin issued on Ethereum.
PayPal has launched its stablecoin, called PayPal USD (PYUSD), an ERC-20 token backed by the US dollar. This makes PayPal the first major financial company to launch a stablecoin.
The launch of PYUSD is part of PayPal's efforts to increase its crypto offerings and make it more accessible to its customers.
Dan Schulman, president and CEO of PayPal, said:
"The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. 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 (PYUSD) is expected to be used for payments and transfers. The stablecoin will be available to PayPal's US customers initially.
Issued by Paxos Trust Co., PYUSD will be pegged to the US dollar, and fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents.
According to Paypal's press release, eligible PayPal users will be able to purchase PayPal USD and enjoy features such as transferring funds between PayPal and compatible external wallets, sending person-to-person payments using PYUSD, funding purchases with PayPal USD at checkout, and converting supported cryptocurrencies to and from PayPal USD.
PayPal has made a huge advancement in the cryptocurrency world with the introduction of PYUSD. With over hundred of millions of users across 200 markets, this move has the potential to inspire more financial institutions to adopt a similar strategy. However, it remains to be seen whether PYUSD will be widely adopted by PayPal's customers.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
