- PayPal has launched its own stablecoin called PayPal USD (PYUSD).
- PYUSD is fully backed by U.S. dollar deposits.
- It can be bought or sold on PayPal’s app or website for $1.00 per PYUSD.
- The stablecoin is designed to reduce friction for in-experience payments in virtual settings and allowing direct flows to developers.
PayPal Launches PYUSD Stablecoin
PayPal has launched its own stablecoin called PayPal USD (PYUSD). The company says the cryptocurrency token is “fully backed by U.S. dollar deposits” and can be bought or sold on PayPal’s app or website at $1.00 per PYUSD.
Designed for Payments
PayPal said the stablecoin’s function is to reduce friction for in-experience payments in virtual settings by allowing direct flows to developers. It’s redeemable for dollars and backed by dollar deposits, short-term U.S. Treasurys, and similar cash equivalents.
A Stable Instrument
“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,” said Dan Schulman, president and CEO of PayPal. “Our commitment to responsible innovation and compliance, and our track record of delivering new experiences to our customers, provide the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Issued by Paxos Trust Co.
PayPal USD is issued by Paxos Trust Co., which also previously issued the dollar-pegged, Binance-branded stablecoin BUSD. Paxos was ordered by the New York State Department of Financial Services in February to stop issuing BUSD, which marked the beginning of this year’s decline in the stablecoin market cap.
