PayPal, a global fintech company, brought innovation in the use of digital currency through the launch of a US dollar-denominated stablecoin, namely PayPal USD or PYUSD. This stablecoin is fully backed by US dollar deposits, short-term US debt securities, and other similar cash equivalents.
As the web3 ecosystem and digital environment evolve, fully backed and regulated stablecoins have the potential to transform payment systems. This is the reason behind the launch of PYUSD by PayPal.
PYUSD is designed to contribute to the opportunities offered by stablecoins in the payment system. Each PYUSD can be exchanged for US dollars on a 1:1 basis and is issued by Paxos Trust Company.
Going forward, PayPal plans to provide a number of PYUSD-related features to eligible US customers, including:
Transfer PYUSD between your PayPal wallet and a compatible external wallet
Make payments between people using PYUSD
Make purchases with PYUSD and this option can be selected at checkout
Convert to and from PYUSD against PayPal supported cryptos
“The move toward digital currency requires an instrument that is stable and easily connected to fiat currencies like the U.S. dollar,” said Dan Schulman, President and CEO of PayPal, “with our commitment to responsible and compliant innovation, and our track record of delivering experience new to customers, we believe we can contribute to the growth of digital payments through PYUSD."
PayPal USD: Connecting Fiat and Web3
PayPal USD will be available for consumers, merchants, and developers to seamlessly connect fiat and digital currencies. As the only stablecoin supported on the PayPal network, PYUSD leverages PayPal's decades of experience in large-scale payment systems, with the speed, cost, and programmability of blockchain protocols.
PYUSD is issued by Paxos Trust Company, which is fully licensed and subject to regulatory oversight by the New York State Department of Financial Services.
Transparency and Education Regarding Digital Currency
PayPal is committed to increasing consumer and merchant understanding of crypto, stablecoins and central bank digital currencies (CBDCs), and working with regulators as the industry evolves. In addition to providing PYUSD, PayPal also provides options for its customers to buy, hold, sell, and transfer certain cryptocurrencies, as well as providing educational content to aid their understanding of this technology.
