Payments giant PayPal announced on the launch of the “stable coin” PayPal USD (PYUSD). The issuer is the infrastructure company Paxos.
According to the announcement, the asset is fully collateralized by “US dollar deposits, short-term treasury bills and similar cash equivalents.” PYUSD is pegged to the US national currency at a ratio of 1:1.
The company emphasized that the stablecoin has been available since August 7, and in the US “will be deployed in the coming weeks.” Clients will be able to:
- transfer PYUSD within the service and between external wallets;
- send payments to individuals;
- pay for purchases;
- convert to any of the supported cryptocurrencies.
PayPal USD was created on the Ethereum blockchain according to the ERC-20 standard. The firm believes that the “stablecoin” will facilitate transfers and international payments, as well as promote the further adoption of digital assets.
Rumors of the payment giant’s plans to launch a “stablecoin” surfaced in May 2021. At that time, one of the informed sources admitted that PayPal would be more likely to select a partner already present in the stablecoin sector.
In February 2023, it became known that the firm froze the development of its own stablecoin amid news of the investigation. NYDFS activities of Paxos, the issuer of BUSD and USDP.
Later, the infrastructure company announced a constructive dialogue with the US Securities and Exchange Commission, which warned of its intention to go to court.
Source: Cryptocurrency
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