PayPal, a leading global payments processor, has recently unveiled its new stablecoin named PYUSD, which is now accessible through its subsidiary app, Venmo. The company’s stablecoin, whose value is linked directly to the US dollar, is currently available to Venmo users and is expected to have a wider rollout in the following weeks.
PayPal made the announcement about PYUSD in September. The stablecoin launch came just six weeks after their subsidiary, Paxos Trust, committed to issuing the currency. Paxos Trust has guaranteed its value through full backing with US dollar deposits, short-term treasury bonds, and similar cash equivalents.
PayPal emphasized the burgeoning presence of PYUSD within its native cryptocurrency platform and its ongoing integration as the ecosystem evolves. Since its launch on the open market, this stablecoin has been listed on selected cryptocurrency exchanges, including Crypto.com, Bitstamp, Coinbase, and Kraken.
Reports from Nansen, a Blockchain analytics company, indicated in August that around 90% of PYUSD is maintained in wallets owned by Paxos Trust. BitPay, a cryptocurrency firm, announced its support for PYUSD on September 12, emphasizing its payment utility and community participation value.
PayPal has been proactively establishing its presence in the crypto market. It started accepting digital asset payments earlier this year, and by 2023, it plans to establish on- and off-ramps for Web3 payments. The New York State Department of Financial Services has also approved PYUSD, placing it on their green list of approved coins.