PayPal Launches PYUSD Stablecoin: New Future in Payments!

PayPal Launches PYUSD


  • PayPal launches PYUSD, a stablecoin pegged to the US dollar, built on Ethereum and designed for digital payments.
  • PYUSD will be redeemable for US dollars, exchangeable for other cryptocurrencies on PayPal, and transferable between PayPal and Venmo.
  • The introduction of PYUSD could position PayPal as a giant in cryptocurrency payments, competing in a $126 billion stablecoin market.

On August 7, the giant payment processing company, PayPal, announced the launch of a new stablecoin called PayPal USD (PYUSD). This measure represents an important advance in the cryptocurrency sector.

What is PYUSD?

The PYUSD stablecoin is pegged to the US dollar and will be issued by Paxos Trust Co., fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents. Furthermore, it is built on Ethereum and designed for digital payments and Web3.

PYUSD is expected to be available to clients in the United States soon. It can be exchanged for US dollars at any time and can be exchanged for other cryptocurrencies at PayPal. It will also be transferable between PayPal and Venmo, and the company claims it will soon be available as a means of payment for various purchases.

PayPal, with more than 350 million active users, already allows users in the US and UK to buy, sell and hold Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The introduction of PYUSD could accelerate PayPal’s efforts to become a giant in cryptocurrency payments, an initiative the company began in 2020.

PayPal CEO Dan Schulman hopes the new stablecoin will become part of the global payments infrastructure. The company confirmed its plan to launch a cryptocurrency in January 2022, stating that it would work closely with relevant regulators.

Although there are multiple stablecoins available on the cryptocurrency market, PayPal will be the first to be launched by a major payment processor. Charles Cascarilla, CEO of Paxos, highlighted the importance of this release, stating that it represents a breakthrough in blockchain technology.

“With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are demonstrating the real value of blockchain technology. PayPal USD is the most significant advance for digital assets and the financial industry, and Paxos is proud to enable this transformative product.”

Regulatory Environment

The company also stated that the regulatory environment in the United States is progressing toward greater clarity. This, along with the regulatory challenges faced by many stablecoins in the country, may create demand for an alternative like PYUSD.

The stablecoin market has a circulating supply of $126 billion, dominated by USDT issued by Tether (which has a market cap of $86.5 billion) and followed by USD Coin issued by Circle (with a market cap of $26 billion). dollars) and some others. However, many stablecoins have recently faced regulatory hurdles in the United States, where lawmakers are currently discussing a bipartisan stablecoin bill.