PayPal Launches U.S. Dollar Stablecoin
PayPal has introduced a new stablecoin named PayPal USD (PYUSD), backed by US dollar deposits, cash equivalents, and US treasuries, enhancing its payment services.
What is a Stablecoin?
A stablecoin is a cryptocurrency created to sustain a consistent value, often tied to real assets such as fiat currency or commodities.
Paxos Trust Co will issue the stablecoin to PayPal customers in the US, allowing 1:1 redemption for US dollars, ensuring a seamless financial experience.
Eligible U.S. PayPal customers who purchase PayPal USD will be able to:
-Transfer PayPal USD between PayPal and compatible external wallets
-Send person-to-person payments using PYUSD
with PayPal USD by selecting it at checkout
any of PayPal's supported cryptocurrencies to and from PayPal USD
PYUSD, an ERC-20 token on Ethereum, will be accessible to external developers, wallets, web3 apps, and exchanges. It will also enhance PayPal's ecosystem experiences.
In the last year, PayPal shares have dropped by 33%, ranking as the sixth-lowest performer on the Nasdaq 100 Index due to the decline in online payments after the pandemic peak.