Peer-to-peer payments app Venmo plans to offer PayPal USD (PYUSD), an ERC-20 stablecoin, in the coming weeks.
The move integrates PYUSD into the Venmo platform, creating a seamless channel for asset transfers between millions of users.
According to PayPal’s press release, Venmo users will soon be able to “buy PYUSD and send it to friends and family on PayPal, Venmo, and compatible external wallets.”
PayPal integrated PYUSD into Venmo as “the first example of a stablecoin achieving large-scale wallet interoperability for free.”
PayPal highlighted the efficiency and cost-effectiveness of the system, saying: “Transfers between PayPal and Venmo users are fast and free, connecting two wallets with millions of users each.” The announcement marks an important step towards making digital transactions more streamlined and less costly.
PayPal initially launched PYUSD on August 7 in partnership with crypto infrastructure company Paxos. The stablecoin is backed by U.S. dollar deposits, short-term Treasury bills, and other cash equivalents, which helps ensure its stability. About a month later, on September 11, PayPal added a feature that allows users to convert digital currencies into U.S. fiat currency.
The introduction of PYUSD to Venmo continues PayPal’s ongoing efforts to enter the cryptocurrency market. Venmo itself has begun offering cryptocurrency purchases in 2021, making PYUSD another digital asset that users can trade. According to PayPal, the mission behind PYUSD is to “deploy secure, regulated stablecoins at scale for the web3 ecosystem and everyday payments.”
Not only is the stablecoin usable on PayPal and Venmo, but it has also gained widespread adoption across various crypto platforms.
The press release states:
“In the weeks since launching on the open market, PYUSD has appeared on select exchanges such as Crypto.com, Bitstamp, Coinbase, and Kraken; leading wallets such as MetaMask, Ledger, and Phantom; custodians such as Fireblocks, Copper, Paxos, and Fordefi; crypto payment service providers such as Bitpay; and is already supported by some of the most widely used decentralized applications.”
Additionally, PYUSD has been greenlisted by the New York State Department of Financial Services, making it easier for licensed entities in New York to support stablecoins. As the cryptocurrency ecosystem continues to grow, the introduction of PYUSD to Venmo marks an exciting chapter in the pursuit of more efficient and cost-effective digital transactions. #PayPal #Venmo