PayPal, the global payment giant, announced that it will expand international transfer options by enabling the exchange of PYUSD and US dollars. At the same time, US users can now use US dollars exchanged from PayPal USD (PYUSD) stablecoins to transfer funds to friends and family overseas.
However, PYUSD is not available to Hawaii residents.
PYUSD to USD exchange for cross-border transfers
PayPal said that US customers using its cross-border payment platform Xoom will be able to convert PYUSD into US dollars and then send funds to recipients in about 160 countries. This means that US users can now make international transfers through PayPal's stable currency PYUSD, first converting PYUSD into US dollars and then sending funds to all parts of the world through the Xoom service, greatly expanding the practicality of PYUSD and the convenience of cross-border payments.
According to an official announcement on April 4, no transaction fees will be charged.
Commenting on this latest development, Jose Fernandez da Ponte, senior vice president of blockchain, cryptocurrency and digital currencies at PayPal, said:
“When we decided to launch PayPal USD, we had two goals in mind: create a product with a stable value to maximize user confidence, and ensure its utility for commerce and payments.
This builds on our goal of driving mainstream adoption of cryptocurrency by giving Xoom’s U.S. users the option to fund cross-border remittances with PYUSD, while also providing a low-cost and convenient way to send funds to friends and family.”
The stablecoin market appears to be heating up.
While Tether’s USDT and Circle-backed USDC remain the world’s top stablecoins, a number of alternatives have sprung up to compete for market share.
Blockchain company Ripple has also announced plans to launch a stablecoin pegged to the U.S. dollar, which is expected to be launched later this year.
Embracing PayPal’s Stablecoin
PayPal, in partnership with Paxos, launched the U.S. dollar-backed stablecoin PYUSD on the Ethereum blockchain in August 2023.
At the time, the fintech company said its main goal was to remove the friction of experiencing payments for the first time in a virtual environment by allowing cost-effective and cheaper transfers of value, sending remittances or making international payments.
Prominent figures in the cryptocurrency industry welcomed the “bold” move amid regulatory uncertainty in the United States.
Several prominent cryptocurrency exchanges such as Huobi, Kraken, Crypto.com, and Coinbase announced the listing of PYUSD in the same month. The stablecoin was also launched on Venmo.
Subsequently, Crypto.com announced a partnership with PayPal to become the preferred exchange for PYUSD.
In November, PayPal acknowledged receiving a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its stablecoin. #PayPal #PYUSD
