On August 7th, PayPal, the global payment processing giant, announced the launch of its United States dollar-pegged payment stablecoin, PayPal USD (PYUSD). The stablecoin is built on the Ethereum (ERC-20) blockchain and will be issued by Paxos Trust Co. PYUSD is reportedly fully backed by U.S. dollar deposits.
PayPal has stated that the introduction of its own cryptocurrency, PYUSD, is a demonstration of the company’s commitment to becoming a major player in the cryptocurrency payment industry. The company aims to make PYUSD an integral component of its payment infrastructure.
PYUSD is currently being introduced to a select group of customers in the United States. PayPal, the payment technology firm, first announced its intention to launch a stablecoin in January 2022. This came nearly two years after the company enabled users in the U.S. and the U.K. to buy, sell, and store cryptocurrencies within their PayPal accounts.
PayPal’s Plan is to Facilitate Access to the Crypto Ecosystem
PYUSD is primarily intended for use in remittances and as a payment method for millions of PayPal merchants. The company has announced that PYUSD will soon be available on Venmo, allowing users to transfer the stablecoin between the two platforms. In addition, PYUSD will be transferable with wallets that support the stablecoin, such as Coinbase Wallet and MetaMask.
PayPal has entered into a collaboration with Ledger, providing significant advantages to cryptocurrency users in the United States. Earlier this month, PayPal introduced its U.S. dollar-linked stablecoin, PYUSD.
On August 16th, Ledger announced a groundbreaking partnership that allows users of Ledger Live (an app by Ledger for managing cryptocurrency purchases, asset growth, and NFT assets) to purchase BTC, ETH, BCH, and LTC using PayPal.
The partnership between Ledger and PayPal combines expertise in cryptocurrency and innovation in payment technology to simplify access to cryptocurrencies for users in the United States via Ledger Live.
This partnership promotes adoption by providing a secure and accessible way to engage with cryptocurrencies, while also addressing the evolving regulatory landscape and the needs of the cryptocurrency community.
In related news, Bybit, a leading cryptocurrency exchange, has recently announced its intention to integrate PayPal’s PYUSD stablecoin into its Spot trading platform. The official date for this integration is yet to be revealed.
This move is in line with the broader trend in the digital finance industry, particularly in light of PayPal’s recent efforts to enhance its cryptocurrency offerings with the introduction of PYUSD. This follows PayPal’s addition of cryptocurrency withdrawal and deposit capabilities in June 2022.
