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PayPal wants to keep getting more involved in the crypto world. They’re doing this by connecting their PYUSD stablecoin with DeFi, which is a way people use cryptocurrency for different financial things.

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Big companies and institutions are trying out DeFi, a new way of using cryptocurrency for money-related stuff. One of these companies is PayPal, which many people know for online payments. They’ve recently made their own stablecoin called PYUSD and are using it more with crypto. This move is important for PayPal and the future of crypto.

PayPal has made a big step into the crypto world by creating PYUSD, their own stablecoin. Right now, you can only use PYUSD in the PayPal wallet, not on regular crypto exchanges. But PayPal’s plan is clear: they want PYUSD to be important not just for them, but for the whole crypto industry.

Targeting the Core of DeFi

Jose Fernandez da Ponte, who is in charge of blockchain, crypto, and digital currencies at PayPal, recently talked about their plans on the Unchained Podcast. He said that PayPal wants to make their stablecoin PYUSD not just compete with stablecoins like USDT and USDC, but also be a good choice like them.

Da Ponte explains, “Lots of people in crypto use stablecoins in DeFi. So, that’s where we want to begin.”

PYUSD is made to work well with technology. It’s an ERC-20 token, which fits perfectly with the Ethereum network. This makes it easy for people to use PYUSD in many different ways once it’s available everywhere.

Sailing Through Regulations

One big worry about crypto money is following the rules set by governments. But with PYUSD, there’s less to worry about. It follows the rules in the U.S. and is supported by Paxos, which is approved by the New York Department of Financial Security (DFS). This is important because New York has tough rules for knowing who’s using the money (KYC) and stopping bad money movements.

Da Ponte said they’re careful about rules. He said, “Since New York has hard rules, we’ve added strong checks to make sure we follow them.”

PayPal and the Future of PYUSD

PayPal is not just trying out crypto – they’re really getting into it with PYUSD. They want their stablecoin to be important in DeFi and other crypto uses.

Even though PYUSD isn’t on regular crypto exchanges yet, PayPal’s bigger plan is clear: they want PYUSD to be used widely. They want it to be safe, flexible, and follow the rules.

In short, big companies like PayPal are entering the world of crypto because traditional money and crypto are coming together. They don’t want to miss out. They’re going into the decentralized world, showing how important DeFi is, and suggesting that traditional and new ways of money can work together.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#NFT #Web3 #Blockchain #Paypal #DeFi

#Paypal Holdings Inc., a major American fintech company, recently released Q1 results revealing that its cryptocurrency holdings are almost worth $1 billion.

Paypal posts strong earnings for Q1, exceeding expectations In its Q1 earnings report, the world’s largest online payment company PayPal revealed that it had increased its cryptocurrency holdings to nearly $1 billion.

Paypal posts strong earnings for Q1, exceeding expectations

PayPal claimed a combined total of $943 million in cryptocurrency assets as of March 31, 2023, per first quarter reports submitted to the Securities and Exchange Commission (SEC). Surprisingly, PayPal reported that it held about $604 million in cryptocurrencies in the previous quarter, which was a significant increase.

PayPal’s cryptocurrency holdings are made up of $82 million in Bitcoin Cash BCH and Litecoin (up from $63 million), $499 million in Bitcoin (up from $291 million in December), $362 million in Ether (up from $250 million), and more. Additionally, the online platform reported that the total financial liabilities for the quarter were $1.2 billion, with crypto assets accounting for 77.9% of those liabilities, which represents an increase of more than 10% from the Q4 liabilities for 2022 reported by the platform.

Notably, since introducing its #cryptocurrency service in the United States in 2021, the company has been expanding its cryptocurrency offerings. Through their PayPal accounts, users are able to use the service to directly purchase, hold, and sell cryptocurrencies. Meanwhile, it appears that the Venmo owner, the payments corporation, outsources the custodial services rather than maintaining the #crypto assets in its own possession.

It’s interesting to note that the business acknowledges that customers may be held responsible if third-party processors are unable to complete transactions. The SEC filing does, however, also note that no such failure has yet taken place.

It’s important to remember that the company ran into a lot of opposition when it tried to rule the cryptocurrency market. For example, Elon Musk had said he was developing a Twitter payment processor that will be better than PayPal.

PayPal Takes a Bold Step with Expanded Crypto Portfolio

PayPal’s increased cryptocurrency holdings are evidence of the firm’s confidence in the potential of virtual money. The action also reflects the growing mainstream acceptance of cryptocurrencies, which are increasingly being regarded by important financial institutions and corporations as legitimate investment assets.

Additionally, the value of the cryptocurrencies PayPal holds could increase as a result of its expanding holdings. The demand for cryptocurrencies increases as PayPal continues to acquire and hold more of them, potentially pushing up the price of those assets.

In a groundbreaking move that has sent shockwaves through the financial world, #Paypal , the payments giant, has officially entered the cryptocurrency realm with the launch of its very own stablecoin, PayPal USD ( $PYUSD ). This move marks a historic milestone, as PayPal becomes the first major fintech company to fully embrace digital currencies for payments and transfers.

The announcement of PayPal's foray into the #stablecoin market has already made a significant impact, propelling the company's shares up by an impressive 2.66% on the day of the revelation. This surge in share value reflects not only the market's enthusiasm for PayPal's innovative step but also the potential it sees in stablecoins despite the challenges faced by the broader cryptocurrency industry over the past year.

Unlike the tumultuous and often volatile nature of traditional cryptocurrencies like $BTC and $ETH , stablecoins are designed to provide a more stable digital asset. These tokens are pegged to a tangible asset, such as a fiat currency like the US dollar, to mitigate the wild price swings that have characterized the cryptocurrency market. While stablecoins have been around for some time, primarily used within the realm of cryptocurrency trading, PayPal's entry into this arena could be the catalyst that propels them into mainstream consumer payment systems.

It's worth noting that previous attempts by major players to launch stablecoins have been met with regulatory and policy hurdles. Facebook's endeavor, initially named Libra and later rebranded as Diem, was met with strong resistance from global regulators due to concerns over potential disruptions to financial stability. However, PayPal's entrance into this space could signal a shift in the regulatory landscape, particularly given the high-profile nature of the company and its positive track record in navigating regulatory challenges.

#PYUSD , PayPal's stablecoin, is backed by a reserve of US dollar deposits and short-term US Treasuries, providing a strong foundation for its stability. This approach ensures that the value of the stablecoin remains closely aligned with the US dollar, offering users a reliable digital equivalent of traditional currency. Moreover, PYUSD can be redeemed for US dollars at any time, adding an extra layer of reassurance for users.

The partnership between PayPal and Paxos Trust Co., the issuer of the stablecoin, adds further credibility to this venture. The stability and trustworthiness of Paxos, combined with PayPal's massive user base and reputation, create a powerful synergy that could redefine the role of stablecoins in the modern financial ecosystem.

As the financial world continues to evolve, with cryptocurrencies and blockchain technology at the forefront of innovation, PayPal's move into the stablecoin arena may well prove to be a pivotal moment. With the potential to transform how we view and use digital assets for everyday transactions, PayPal's stable USD coin sets a new precedent for the future of payments and transfers. As lawmakers and regulators continue to shape the regulatory landscape for digital assets, it remains to be seen how PayPal's bold step will influence the trajectory of stablecoins and the broader #cryptocurrency market.

Ledger has announced its integration with global payment giant PayPal. This collaboration aims to provide users with a seamless and secure platform to explore the world of digital currencies.

The integration allows U.S. users, in compliance with state laws, to directly purchase cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) using their linked PayPal accounts via the Ledger Live companion app. Notably, those who have previously bought crypto with PayPal can now purchase in Ledger Live without additional verification. The acquired digital assets will be automatically transferred to the user’s Ledger hardware wallet.

To utilize this feature, users can simply open the Ledger Live app, navigate to the ‘Buy’ section, select their desired cryptocurrency, specify their country, and choose PayPal as their payment method. The digital assets will be securely sent to the user’s Ledger device after a successful transaction on the PayPal interface.

However, for those who haven’t used PayPal for crypto transactions, creating a PayPal account or undergoing Know Your Customer (KYC) verification will be mandatory.

Pascal Gauthier, Chairman & CEO of Ledger, expressed his enthusiasm about the partnership, stating, “Both PayPal and Ledger are committed to ensuring secure, fast, and seamless transactions. By integrating Ledger’s unmatched security with PayPal’s two-decade expertise in digital payments, we aim to provide a robust platform for cryptocurrency transactions.”

Regulating stablecoins

This collaboration comes on the heels of PayPal’s recent announcement of its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), launched on the Ethereum blockchain. PayPal’s new stablecoin, regulated by the New York State Department of Financial Services and overseen by Paxos Trust Company, aims to bridge the gap between fiat and digital currencies, potentially changing the digital payment landscape significantly.

However, the integration has not been without its critics. U.S. Congresswoman Maxine Waters recently expressed concerns about the lack of a comprehensive federal framework to regulate stablecoins such as PayPal’s USD-pegged PYUSD, underlining the need for robust oversight to safeguard users and ensure financial stability. Waters’ concerns stem from PayPal’s vast global customer base, which surpasses that of many major banks.

Despite potential regulatory hurdles, Ledger, which has over 1.5 million active users, remains committed to providing secure and user-friendly platforms to facilitate digital currency transactions. With the Ledger Live app, users can access a growing list of Decentralized Applications (DApps) while ensuring the safety of their private keys on their Ledger device.

#BTC #Bitcoin #Paypal $BTC