Key Takeaways:
- PayPal introduces its U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), fully backed by U.S. dollar assets.
- The stablecoin offers seamless transfers, P2P payments, and conversions between cryptocurrencies.
- Monthly Reserve Reports and third-party attestations to ensure transparency.
Introduction to PayPal USD:
In the evolving landscape of digital payments, PayPal (NASDAQ: PYPL) unveils its latest venture: PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin. This move showcases the growing importance of stablecoins, anticipated to reshape payments in web3 and other digitally native spheres.
Specifications and Features
PayPal USD is fully-backed and regulated, with its worth anchored to the U.S. dollar. It’s supported by U.S. dollar deposits, short-term U.S. Treasuries, and equivalent cash assets. Issued by Paxos Trust Company, PYUSD is redeemable 1:1 for U.S. dollars. For eligible U.S. PayPal customers, this stablecoin ushers in a myriad of features. They can now effortlessly transfer PayPal USD between their PayPal and compatible external wallets, make P2P payments using PYUSD, and opt for PayPal USD at checkout. Furthermore, conversions between PYUSD and supported cryptocurrencies on PayPal are now feasible.
Bridging Fiat with Web3
A pivotal aspect of PayPal USD is its capability to bridge the divide between traditional fiat currencies and the burgeoning web3 domain. With its design, it can mitigate friction for in-experience payments in virtual settings, expedite value transfers, and will soon mark its presence on Venmo.
Ensuring Security and Transparency
Ensuring utmost security and transparency, PayPal USD’s reserves are robustly backed, with Paxos Trust Company releasing a monthly Reserve Report and a third-party attestation on the reserve assets.
PayPal’s Ongoing Commitment
PayPal continues its commitment to illuminate consumers and merchants about the expansive world of cryptocurrencies, stablecoins, and CBDCs. Leveraging over two decades of experience, PayPal stands as a beacon in the digital payment revolution, constantly innovating to meet the demands of an ever-evolving global economy.
Source
https://www.prnewswire.com/news-releases/paypal-launches-us-dollar-stablecoin-301894262.html