PayPal has announced the launch of its first US dollar stablecoin, called PayPal USD (PYUSD). The stablecoin is backed by US dollar deposits, short-term US Treasuries, and other cash equivalents, and will be available to US customers gradually.
PYUSD can be used to fund purchases on PayPal, send money to friends and family, and convert to other cryptocurrencies. It can also be transferred between PayPal and selected external wallets.
The launch of PYUSD is a significant move for PayPal, as it is the first major US financial institution to offer a stablecoin. The company has been gradually expanding its crypto offering in recent years, and this move is seen as a further sign of its commitment to the space.
PayPal CEO Dan Schulman said that PYUSD is "a major milestone in our journey to connect the world to the digital economy." He added that the stablecoin will "make it easier and faster for people to move money and make payments."
The launch of PYUSD comes at a time of growing interest in stablecoins. These tokens are designed to maintain a stable value relative to a fiat currency, such as the US dollar. This makes them attractive to investors who are looking for a safe and liquid way to store their wealth.
Stablecoins are also being used by businesses to facilitate payments. PayPal's move to launch its own stablecoin is likely to accelerate the adoption of this technology by businesses and consumers alike.
It remains to be seen how PYUSD will be received by the market. However, the launch of this stablecoin is a significant development in the crypto space, and it is likely to have a major impact on the way people make payments in the years to come.
Here are some of the key features of PYUSD:
It is backed by US dollar deposits, short-term US Treasuries, and other cash equivalents. This means that it is always worth $1 USD.
It is available to US customers gradually. This will start with a limited number of users, and the rollout will be expanded over time.
It can be used to fund purchases on PayPal. This includes purchases from online merchants and in-store.
It can be sent to friends and family. This can be done through PayPal's peer-to-peer payment service.
It can be converted to other cryptocurrencies. This can be done through PayPal's crypto exchange service.
It can be transferred between PayPal and selected external wallets. This will allow users to hold PYUSD in their own wallets, if they choose to do so.
The launch of PYUSD is a significant development for PayPal and for the crypto space as a whole. It is likely to accelerate the adoption of stablecoins by businesses and consumers alike.