Payments giant PayPal is launching its own stablecoin, and the move has got both traditional fintech players as well crypto firms excited. Dubbed ‘PYUSD,’ the stablecoin is built on Ethereum and is 1:1 redeemable for US dollars. The move essentially marked the first such move from a major financial institution in the United States.

While PayPal briefly stopped working on its stablecoin a few months ago amid tightening regulatory scrutiny of crypto, the subsequent announcement is being touted to be a “bold move” by several industry experts, given the hostile regulatory climate in the US.

Expert’s Take on PayPal’s New Stablecoin

The main objective of PayPal USD is to eliminate friction for in-experience payments in virtual environments by facilitating fast transfers of value, sending remittances, or conducting international payments. It is also designed to allow direct flows to developers and creators and boost the continued expansion into digital assets by the largest brands in the world.

With 400 million active accounts and a dominant 50% share in the online payments market, PayPal possesses the influence to reshape the discourse. This prospect has sparked excitement among both crypto leaders and its rivals alike.

In a statement, Tether’s CTO Paolo Ardoino “welcomed” PayPal to the stablecoin industry and said,

“We all have the shared goal of driving stablecoin adoption and innovation and competition leads to the development of solutions that enhance the overall ecosystem. Each project strives to differentiate itself by providing unique benefits to users, driving innovation, and providing users with more choices and control over their transactions. Fostering competition allows a healthy and diverse market environment.”

However, the current regulatory uncertainty surrounding digital assets in the US cannot be deemed conducive for such a project. It’s worth noting that social media giant Meta ultimately scrapped its intention to introduce its own stablecoin, Diem, last month due to regulatory backlash. Hence, Keyrock co-founder and CEO Kevin de Patoul believes PYUSD’s launch