PayPal has launched a dollar-backed stablecoin called PayPal USD.
The stablecoin is 100% backed by U.S. dollars held in reserve by Paxos Trust Company. It is redeemable one-for-one for U.S. dollars and can be used to send payments, fund purchases, and convert to and from other cryptocurrencies supported by PayPal.
Paxos 🤝 PayPal
Thrilled to be partnering with @PayPal to bring PYUSD, the world’s safest dollar-backed digital asset, to hundreds of millions of consumers and merchants worldwide.
PYUSD is the first of its kind, representing the next phase of US dollars on the blockchain. This…— Paxos (@Paxos) August 7, 2023
PayPal USD is the first stablecoin to be launched by a major financial institution. It is a significant step for PayPal, which is increasingly looking to expand its cryptocurrency offerings. The company has said that it plans to make PYUSD available to more users in the coming months.
The launch of PYUSD comes at a time of growing interest in stablecoins. Stablecoins are a type of cryptocurrency that is pegged to a fiat currency, such as the U.S. dollar. This means that they are less volatile than other cryptocurrencies, making them more attractive to investors and businesses.
PayPal’s launch of PYUSD is a major boost for the stablecoin industry. It is a sign that major financial institutions are taking stablecoins seriously and that they see them as a viable option for payments and other financial services.
