I found news that will potentially have a huge impact on the crypto market and retail!
PayPal, a global leader in digital payments, has announced the launch of its U.S. dollar-backed stablecoin, PayPal USD (PYUSD). With this move, the company aims to bridge the gap between fiat and digital currencies, thereby transforming the way payments are made in web3 and digitally native environments.
PayPal USD is entirely backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents. This new stablecoin, issued by Paxos Trust Company, can be redeemed on a 1:1 basis for U.S. dollars. Furthermore, the launch of PayPal USD promises to unlock several opportunities for eligible PayPal customers, including:
- Transferring PayPal USD between PayPal and compatible external wallets.
- Making person-to-person payments using PYUSD.
- Funding purchases with PayPal USD at checkout.
- Converting PayPal’s supported cryptocurrencies to and from PayPal USD.
Almost as much as I love PayPal, I adore Binance. This will be the first coin I’ve ever looked forward to.
PayPal USD is designed to act as a bridge connecting fiat and digital currencies for consumers, merchants, and developers. As an ERC-20 token issued on the Ethereum blockchain, PayPal USD is readily adoptable by exchanges and can power experiences within the PayPal ecosystem.
The shift toward digital currencies necessitates a stable instrument that is digitally native and easily connected to fiat currency like the U.S. dollar. We are leveraging our strong commitment to responsible innovation and compliance, along with our proven track record in delivering new experiences to our customers, to contribute to the growth of digital payments through PayPal USD.PayPal’s CEO, Dan Schulman
PayPal USD promises to reduce friction for payments in virtual environments, facilitate fast value transfers, enable direct flows to developers and creators, and encourage further expansion into digital assets by the world’s largest brands. The stablecoin will also be compatible with web3-specific environments from day one and will soon be available on Venmo.
Paxos Trust Company, the issuer of PayPal USD, is a fully licensed limited purpose trust company under regulatory oversight by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. To ensure transparency, Paxos will start publishing a public monthly Reserve Report for PayPal USD from September 2023, which will outline the composition of the reserves.
In addition to this, PayPal remains committed to fostering an understanding and adoption of digital currencies. The company aims to increase comprehension of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs), and provide educational content to help users understand the associated risks and opportunities.
PayPal’s entry into the stablecoin market with the launch of PayPal USD on Binance is a significant move towards a more integrated financial ecosystem, providing an easily accessible bridge between traditional fiat and the expanding world of digital currencies.