PayPal, one of the largest payment networks in the world, announced that they are launching a new U.S. Dollar Stablecoin called PayPal USD (PYUSD). The company claims that the new digital currency is fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents. PYUSD will also be redeemable at 1:1 for U.S. dollars.
PayPal Launches PYUSD Stablecoin on Ethereum
In a recent press release, PayPal announced the official release of this stablecoin, which aims at transforming payments in web3 and other digitally native environments. The official announcement says that the rolling-out phase starts today and it will take a few weeks for eligible U.S. PayPal customers.
Some of the use cases of this new stablecoin include transfers (both to receive and send), fund purchases and convert. There are multiple options for users to choose if they want to use their PayPal USD.
Dan Schulman, the president and CEO of PayPal said:
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.”
Additionally, he mentioned that they are working in order to be responsible for innovation and compliance as well.
With the official launch of this virtual currency, customers, merchants and developers will be able to seamlessly connect multiple payment methods (fiat and digital currencies). It is also worth mentioning that the token runs on top of the Ethereum (ETH) network, the second-largest blockchain in the world after Bitcoin (BTC).
In the future, PYUSD can be accepted by exchanges, web3 applications and many other companies that would like to adopt this digital currency.