Global online payments giant PayPal has announced the launch of its own cryptocurrency stablecoin, PayPal USD (PYUSD), to expand its crypto services and give its customers more choice.
PayPal USD is the Paxos Trust Co., a regulated trust company and custodian of digital assets. and will be fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents.
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PayPal said in its official statement:
“Fully collateralized, regulated stablecoins have the potential to shape payments in web3 and digitally native environments. To address this emerging potential, PayPal announced today that it is launching PayPal USD (PYUSD), a USD-denominated stablecoin.
PayPal USD is designed to add to the opportunity offered by stablecoins for payments and is backed by 100% US dollar deposits, short-term US Treasury bonds and similar cash equivalents. PayPal USD is refundable at a rate of 1:1 against US dollars and is issued by the Paxos Trust Company.
Starting today and rolling out in the coming weeks, certain US PayPal customers who purchase PayPal USD will be able to:
- Transfer PayPal USD between PayPal and compatible external wallets.
- Send person-to-person payments using PYUSD.
- Make purchases with PayPal USD by selecting it at checkout.
- Make your purchases with PayPal USD when you choose during checkout.
- Convert any of PayPal supported cryptocurrencies to and from PayPal USD.”
“The transition to digital currencies requires a stable tool that can be easily tied both digitally to local and fiat currencies such as the US dollar,” said Dan Schulman, PayPal President and CEO.
Our commitment to responsible innovation and compliance, and our track record in delivering new experiences to our customers, provide the necessary foundation to contribute to the growth of digital payments through PayPal USD.”
PayPal USD can be used by consumers, merchants and developers to seamlessly connect fiat and digital currencies.
As an ERC-20 token issued on the Ethereum blockchain, PayPal USD can already be used by a large and growing community of external developers, wallets and web3 apps, easily adopted by exchanges, and used to power experiences within the PayPal ecosystem.
PayPal USD reserves will be fully backed by US dollar deposits, US Treasury bonds and similar cash equivalents, and PayPal USD can be bought or sold via PayPal at a rate of $1.00 per PayPal USD.
*Not investment advice.
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issued on ETH, what the fee!?