PayPal has unveiled its very own crypto stablecoin, PayPal USD (PYUSD), in a bid to amplify its cryptocurrency offerings and empower customers with a diverse array of choices.
This strategic launch comes as part of PayPal’s ongoing efforts to innovate and revolutionize the digital payment landscape.
PayPal USD is backed by the esteemed Paxos Trust Co., a regulated trust company and a pioneer in the custody of digital assets.
Distinctively, this stablecoin will be comprehensively supported by US dollar deposits, short-term Treasury bonds, and similar cash equivalents, ensuring a fully collateralized and secure foundation.
Designed to harness the potential of stablecoins for seamless payments, PayPal USD stands poised to redefine transactions in the realm of web3 and digitally native environments.
Notably, this stablecoin is refundable at a straightforward 1:1 ratio against US dollars, further emphasizing its stability and reliability. The Paxos Trust Company stands as the issuer of PayPal USD, cementing its credibility.
Commencing today and set to roll out in the ensuing weeks, eligible US-based PayPal customers who acquire PayPal USD can unlock an array of remarkable capabilities, including:
- Transferring PayPal USD seamlessly between PayPal and compatible external wallets.
- Facilitating person-to-person payments using the versatile PYUSD.
- Leveraging PayPal USD for purchases by simply selecting it during checkout.
- Enjoying the flexibility of choosing PayPal USD as the preferred mode of payment during checkout.
- Swiftly converting any of the cryptocurrencies supported by PayPal to and from PayPal USD.
Dan Schulman, President and CEO of PayPal, aptly noted, “The transition to digital currencies requires a stable tool that can be easily tied both digitally to local and fiat currencies such as the US dollar.”
Schulman’s remarks underscore PayPal’s commitment to responsible innovation and compliance, along with the company’s unwavering dedication to delivering novel experiences to its cherished customers.