PayPal was founded in 1998 as an online third-party payment service provider. Musk was a co-founder. PayPal is currently the world's largest third-party payment provider. PayPal's partner bank in Taiwan is Yushan Bank. Users can use Yushan Bank's Yushan Global Connect to withdraw US dollars in PayPal or withdraw Taiwan dollars.

PayPal has entered the cryptocurrency market since 2020, opening up users to buy, sell and hold cryptocurrencies. The US dollar stable currency PYUSD (PayPal USD) issued by Paypal was officially released in August 2023. The Consensus conference on May 29 this year announced its cooperation with Solana. PYUSD currently ranks seventh in market value. PYUSD is issued by Paxos with a circulation of 3.99 billion U.S. dollars (USDT issuance is 112 billion U.S. dollars).

(Will PayPal Stablecoin Change DeFi? What You Didn’t Know About PayPal USD (PYUSD) Limitations)

The use and development of PayPal stable currency PYUSD

Beginning in 2020, PayPal's blockchain development department began to deploy cryptocurrency payment functions, and users can use cryptocurrency to check out and pay. Users who have cryptocurrency in their Paypal account can choose to pay with cryptocurrency. Now we are gradually expanding the development of cryptocurrency e-commerce services and developing them guided by blockchain technology.

PayPal wallet can buy and sell cryptocurrencies

PayPal has launched the ability to buy, hold and sell cryptocurrencies for US users. Paypal has partnered with stablecoin issuer Paxos technology to add cryptocurrency payment functionality (Checkout with Crypto), bringing cryptocurrency trading services to the UK. Allows consumers to conduct cryptocurrency storage and payment transactions through PayPal. PayPal marks a new milestone in enabling cryptocurrency transfers as a stablecoin for mainstream e-commerce transactions.

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PayPal and Venmo wallets have simple UI pages and users can choose to send PYUSD on Ethereum or Solana. PYUSD supports Ledger cold wallet and MetaMask little fox wallet, and can store PYUSD in them.

PayPal regulated in New York

PayPal holds a virtual currency business license from the New York State Department of Financial Services. The publisher, Paxos, is also a government-chartered trust management company.

Paxos' products include blockchain technology, cryptocurrency buying and selling, etc., and its products are regulated by the New York State Department of Financial Services. PayPal USD's reserve funds are backed by U.S. dollar deposits, U.S. Treasury securities and cash equivalents. The issuance and custody of PayPal USD is managed by Paxos.

PYUSD can support a variety of blockchain applications

PYUSD (PayPal USD) uses the Ethereum ERC-20 standard and supports multiple blockchains.

PYUSD is a stablecoin system designed for Web3, supporting transactions with third-party exchanges, wallets, decentralized applications (dApps) and NFT markets. PYUSD can help developers integrate Web3 payment functions and use PYUSD as a Web3-compatible entry and exit interface.

Developers can use PYUSD to develop their own products. Easily connect traditional financial services with stable, open, programmable and regulated cryptocurrencies. PayPal’s layout for PYUSD also includes using it as a metaverse game token, buying and selling NFT, etc.

Diversity Inclusion and Web2 Applications in PayPal Wallet

The PayPal wallet can receive stablecoins from other self-hosted wallets and has more flexible ways to use it, including paying salaries, payments, company expenses, cross-border settlements and other B2B (Business To Business) transactions.

It is worth noting that unlike USDC and USDT, which are widely used in DeFi exchanges and extended financial products, the newly issued PYUSD focuses on commercial payment functions and supports the integration of various blockchain technologies to enable the integration between the United States, the United Kingdom and the European Union. business transactions between companies will be smoother. PYUSD from the PayPal wallet can be transferred to Ethereum or Solana addresses.

Business protection with PYUSD

PYUSD can be bought and sold via PayPal and Venmo at 1:1 USD. Some compliant US users do not need to pay transaction fees when buying and selling PYUSD. PayPal's issuance of the US dollar-based PYUSD stable currency also has an indicator significance. During inflation, small and medium-sized traders around the world can use the US dollar stable currency to control costs, save international exchange rates, and balance expenses. Relative to the uncertainty surrounding the positioning of other cryptocurrencies, USD stablecoins will not be classified as securities or stocks.

PYUSD possible issues

Some online observers pointed out that if PayPal's past payer protection clauses (note: the payee or e-commerce buyer must receive the goods before paying, if the buyer is not satisfied, the seller needs to refund the full amount) are also applied to On PYUSD, you may suffer losses if you encounter fraud that involves someone maliciously receiving the goods, then pretending not to have received the goods, and then asking for a refund. Because if the blockchain financial flow is out of PayPal's control, it will be difficult to freeze and recover it.

Solana’s Partnership Development Forecast

PYUSD targets the global commercial market. At the Consensus conference on May 29, 2024, PayPal officially announced that PYUSD will integrate the Solana blockchain. By integrating multiple blockchains, this blockchain technology upgrade allows consumers to choose which chain they want to use PYUSD on. PayPal users and business owners can cross-use fiat and stablecoins and multiple blockchains.

The Solana blockchain is known for processing large volumes of transactions at extremely low costs and at high speeds. PYUSD stablecoin chooses Solana's token expansion technology, which can encrypt transactions, hook up call programs, and fill in transfer records. It can collect payments faster for business users who often need cross-border transactions.

Crypto.com, Phantom, and Paxos are first to offer early adopters access to PYUSD on the Solana blockchain. The possible future application development of the cooperation between PYUSD and Solana is to drive Solana's NFT market, develop Web3 games and metaverse, and e-commerce platform. The Solona Foundation has supported multiple game and NFT teams, and its cooperation with PayPal may drive a new wave of token economy, combining game tokens and payment exchange to connect global gamers and new users that were previously out of reach. Bringing new customers into PayPal.

Based on PayPal's leading third-party payment status combined with PYUSD wallet technology, if combined with X or other social media to provide payment subscription functions, it can also bring more benefits to creators.

This article seamlessly integrates with the Web2 business environment! The use and development of PayPal stable currency PYUSD first appeared on Chain News ABMedia.