PayPal is stepping into the world of cryptocurrencies by introducing its own stablecoin designed for digital payments and Web3. PYUSD is set to be compatible with major cryptocurrency exchanges, both cold and hot wallets, and Web3 applications.
This move by PayPal marks its foray into the cryptocurrency landscape, introducing a stablecoin backed by USD deposits. It's important to note that along with this announcement, the market saw an influx of counterfeit tokens.
PayPal USD is now available PayPal's plans to release a USD-linked stablecoin have been known for some time. The company has taken another significant step toward embracing cryptocurrencies and Web3. PayPal USD is already accessible to eligible customers in the United States, who have been able to transfer the PYUSD token to external wallets and between users since August 7th. And that's not all – the PayPal USD token can also be used to make purchases at PayPal-enabled point-of-sale terminals, as well as exchanged for other cryptocurrencies and vice versa.
It's worth highlighting that PayPal's cryptocurrency is backed by USD deposits, cash equivalents, and short-term U.S. Treasury bonds. The fintech giant assures a 1:1 exchange ratio between the token and USD. Dan Schulman, PayPal's CEO, emphasizes that PayPal USD will be Web3-compatible right from the outset. Soon, PYUSD is also expected to make an appearance in the fintech app Venmo, which facilitates peer-to-peer transfers.