PayPal introduced its stablecoin named PayPal USD (PYUSD). The stablecoin is supported by deposits in U.S. dollars, short-term U.S. Treasuries, and comparable cash equivalents.
The company is gradually introducing its stablecoin, which is pegged to the USD, to customers based in the U.S. This move, announced on Monday, marks PayPal’s venture into the global payments landscape. Furthermore, the announcement is the first time a key U.S. financial institution is introducing its stablecoin.
Paxos Trust Company, a crypto financial services firm in New York, is issuing PYUSD. The firm will consistently release reports revealing the assets that secure the stablecoin, guaranteeing its safety and complete redeemability.
“Beginning in September 2023, Paxos will publish a public monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves. Paxos will also publish a public third-party attestation of the value of PayPal USD reserve assets. The attestation will be issued by an independent third-party accounting firm and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.”
PYUSD will be accessible on PayPal first, and eventually on its well-known Venmo app. It aims primarily to enable smooth digital payments and transfers on blockchain-based applications and Web3 platforms. People can use it for sending money, conducting online purchases, and trading among diverse cryptocurrencies endorsed by PayPal.
Developers find this stablecoin user-friendly since it is constructed on the Ethereum blockchain. This feature enables straightforward incorporation into a range of applications and wallets. Besides, it elevates the swiftness and reach of digital payments.
PayPal’s CEO Dan Schulman emphasized the need for a stable digital instrument seamlessly linked to fiat currencies, such as the U.S. dollar. He highlighted PayPal’s dedication to responsible innovation, compliance, and a history of introducing novel customer experiences. This establishes the essential groundwork for PayPal to foster the expansion of digital payments with PayPal USD.
Through this stablecoin, the divide between conventional fiat currencies and the burgeoning realm of digital currencies is bridged. Therefore, it enhances the convenience for individuals to embrace this groundbreaking monetary form.