PayPal stablecoin PYUSD launches on Ethereum

In a move signaling the significant shift towards digital currencies, PayPal has announced the launch of its U.S. dollar-backed stablecoin – PayPal USD (PYUSD).

This development, announced by PayPal directly, adds a new dimension to the emerging potential of regulated, fully-backed stablecoins in transforming payments in digitally native environments like web3.

In a prepared statement, Paxos CEO and cofounder Charles Cascarilla said:

“With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are proving the real-world value of blockchain technology. PayPal USD is the most significant leap forward for digital assets and the financial industry and Paxos is proud to enable this transformative product.”

The news comes after progress on the project was said to have stalled in February. A company representative told Bloomberg then, “We are exploring a stablecoin…If and when we seek to move forward, we will, of course, work closely with relevant regulators.”

What is PYUSD? PayPal USD

PYUSD is fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, providing a one-to-one redemption for U.S. dollars. Further, the company confirmed that the stablecoin will be available for U.S. customers.

Additionally, according to the terms listed in the announcement, it appears that PYUSD may become the native token of PayPal’s crypto service with no “spread” charged on the swaps.

“When you buy or sell cryptocurrency, including when you check out with crypto, we will disclose an exchange rate and any fees you will be charged for that transaction.

For currencies other than PayPal USD, the exchange rate includes a spread that PayPal earns on each purchase and sale. PayPal USD is not available in Hawaii.”

Acknowledging the need for a stable, digitally native instrument easily connected to fiat currency, Dan Schulman, President and CEO of PayPal, expressed the co

Go to Source to See Full Article
Author: Liam ‘Akiba’ Wright

Did you like this?
Tip BTC Newswire with Cryptocurrency