Empowering Digital Payments: PayPal Launches a Dollar-Backed Stablecoin

On Monday, PayPal shared the news about its new stablecoin, stating that buyers can reclaim this digital asset 1:1 for US dollars. PayPal USD (PYUSD) is fully regulated and backed by US dollar deposits, short-term treasuries, and other related cash equivalents.
According to this payment giant, regulated stablecoins such as PYUSD can bring fiat and We 3.0 closer, resulting in a more prosperous environment for digital payments to thrive.

Reading Time: < 1 minute

PayPal USD

Illustration: Lenka T.

PayPal USD (PYUSD)

PayPal is a prominent financial technology company that has been transforming the digital payments world since its inception. The company focuses on convenience, providing a seamless user experience that allows users to send/receive funds, shop, or even save money.

PayPal also aims to make crypto more accessible to users who want to dabble in Web 3.0 payments. Since 2022, eligible PayPal account holders can transfer cryptocurrencies such as BTC and ETH to and out of their PayPal accounts.

Still, this global payments giant has decided to dive deeper into Web 3.0. As of August 7, PayPal is behind PayPal USD (PYUSD), a stablecoin launched to help facilitate digital payments. The coin is issued by Paxos Trust Company, US dollar deposits fully back its reserves, and eligible users can trade it through PayPal.

image-1

The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.

Said Dan Schulman, president, and CEO of PayPal, after the stablecoin launch.

One PayPal USD coin equals 1$ and is currently available for purchase via PayPal in the US only. PYUSD is an ERC-20 token on Ethereum, and anyone can purchase and trade this digital asset on chain, but only PayPal account holders from the US can interact with it via PayPal’s channels.

image-1

Our commitment to responsible innovation and compliance, and our track record of delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.

Dan Schulman, president, and CEO of PayPal

With PYUSD, you can pay within virtual worlds or send and receive money instantly. According to PayPal, this stablecoin is also ideal for handling international transactions and helping more brands and people enter the digital asset scene.

Jelena is a content writer dedicated to learning about all things crypto. Her hobbies are playing chess, drawing, baking, and going on long walks. During winter, she usually spends her leisure time reading books.