PayPal has made its PYUSD stablecoin available on the Venmo platform, allowing for seamless transactions among peers. Initially, this feature is accessible to select users, with plans to expand access to all Venmo users in the near future.
Venmo, a popular mobile payments app owned by PayPal, will enable its users to purchase and send PYUSD to fellow Venmo users and PayPal wallets.
One of the standout features is that PayPal is offering free stablecoin transfers between PayPal and Venmo users, a significant step in achieving wallet interoperability on a large scale.
However, it’s important to note that blockchain network fees will apply for individuals using compatible external wallets and for merchants who accept payments in PYUSD.
PYUSD is an Ethereum-based stablecoin that’s pegged to the U.S. dollar. It was launched by PayPal in August, and users can currently acquire PYUSD on various cryptocurrency exchanges such as Crypto.com, Coinbase, and Kraken.
Stablecoins are digital assets designed to maintain a stable value, typically mirroring the value of a traditional currency like the U.S. dollar. PayPal’s PYUSD is backed by a combination of USD deposits and short-term treasuries.
While PYUSD has gained traction, its market capitalization currently stands at $44.3 million, which is still considerably smaller compared to stablecoin giants like Tether (USDT) and USD Coin (USDC). It’s worth noting that Paxos Trust holds $45.3 million in assets that back PYUSD, as reported recently.
Paxos, the entity behind PYUSD, recently made headlines due to a peculiar Bitcoin transaction that included a staggering $500,000 transaction fee. Initially attributed to PayPal by blockchain analysts, this incident created quite a buzz.