PayPal Launches Its Own Stablecoin• August 7, 2023 10:51 am • Comments
Digital payments company PayPal has officially launched its own stablecoin that is backed by USD deposits.
PayPal’s new cryptocurrency is called PayPal USD and goes by the ticker PYUSD.
The move by PayPal is the company’s attempt to “boost the adoption of digital currencies for payments and transfers.”
After PayPal made the big announcement, shares from the company jumped to $63.70 per share.
PayPal launching crypto stablecoin pic.twitter.com/kV9L10QtfI
— Whale (@WhaleChart) August 7, 2023
JUST IN: PayPal’s stablecoin $PYUSD is backed by US dollar deposits, short-term Treasury bills, and cash equivalents.
— Watcher.Guru (@WatcherGuru) August 7, 2023
Check out what Reuters reported:
Payments firm PayPal (PYPL.O) on Monday launched a U.S. dollar stablecoin in a bid to boost the adoption of digital currencies for payments and transfers.
The stablecoin, known as PayPal USD, is backed by U.S. dollar deposits and short-term U.S Treasuries, and will be issued by Paxos Trust Co, according to the company.
PayPal’s shares rose 1.4% to $63.66.
Stablecoins are cryptocurrencies designed to be protected from the wild volatility that makes it difficult to use digital assets for payments or as a store of value.
PayPal USD is pegged to the dollar and will gradually be available to the company’s customers in the United States, the digital payments firm said.
Last month a U.S. congressional committee failed to come to an agreement on a bill to establish a federal regulatory framework for stablecoins.
Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023
PayPal on Monday launched a U.S. dollar-backed stablecoin to help facilitate payments as its latest addition to its suite of crypto services. It’s the first such move from a major U.S. financial institution.
The new asset, called PayPal USD (PYUSD), was designed to address the “emerging potential” to “transform payments in web3 and digitally native environments.” Its launch comes as market participants await a vote on a key stablecoin bill, which has just advanced to the House with three other crypto bills for the first time.
PayPal said the stablecoin’s function is to reduce friction for in-experience payments in virtual settings and allowing direct flows to developers. It’s redeemable for dollars and backed by dollar deposits, short-term U.S. treasuries and similar cash equivalents.
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