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Payment Giant Paypal Introduces PYUSD, a Stablecoin Backed by Dollars

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Paypal launched the first stablecoin by a major financial firm. According to Bloomberg, the launch could speed up cryptocurrency payments.

Paypal launched a dollar-backed stablecoin on Monday, making headlines. “Over time, this becomes a part of the overall payments infrastructure,” Paypal CEO Dan Schulman told Bloomberg.

Paxos Trust Co. issues “PayPal USD (PYUSD),” a coin backed by U.S. dollar deposits, short-term Treasury securities, and other low-risk assets. According to the article, Paypal’s U.S. customers will gradually gain access to it.

Schulman expects PYUSD’s fast, cheap, middleman-free transfers will cement Paypal’s digital transaction dominance. Paypal halted its stablecoin project in February citing regulatory concerns. If Paypal proceeded forward, a spokeswoman said it would work closely with financial regulators.

The report says PYUSD would initially support cryptocurrency trading and game/app payments. Bloomberg writer Anna Irrera says Paypal expects to enable affordable remittances and micropayments. Paxos issues reserve reports and third-party attestations for PYUSD while users transfer it between Paypal and Venmo wallets.

Over the past year, Paxos’ BUSD and USDP stablecoins have seen their supplies fall. USDP fell 34.1% this month while BUSD supply fell 15.6%. In mid-February, the NYDFS ordered Paxos to stop issuing BUSD.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a leading crypto blog writer, he relishes sharing his knowledge on the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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