PayPal’s US dollar dominated stablecoin will be issued by Paxos

Paypal launched its own stablecoin – PYUSD, backed by the US dollar, treasury bills, and cash equivalents
The coin will be issued by Paxos, the same company that issued BUSD, which was later labelled as security by the SEC

PayPal, an online payments giant, announced its step into the digital currency market with its own stablecoin – PayPal USD [PYUSD]. The coin will be pegged against the dollar and backed by dollar deposits, short-term US treasuries, and cash equivalents. Notably, the stablecoin will be issued by Paxos Trust Company, the same company that issued Binance stablecoin [BUSD]. The press release read,

“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world.”

Additionally, the stablecoin will be an ERC-20 token, leveraging the security provided by the Ethereum blockchain. And, it will be initially available for eligible US customers and can be used between PayPal and other compatible wallets. The company also stated that the stablecoin will be available on Venmo, another American payments service company.

Read Ethereum’s [ETH] Price Prediction 2023-24

Moreover, the company will publish its Reserve Report for PYUSD, detailing the reserves, starting September 2023. The report will also include a third-party attestation of the value of the reserves. This will be issued by a company that meets the American Institute of Certified Public Accounts (AICPA) standards.

Paypal’s PYUSD had ties with bankrupt FTX

Notably, the news of PayPal’s stablecoin interest has been circulating in the news since last year. More so, the coin was meant to be unveiled in 2022 but had met with several hurdles including regulatory roadblocks. According to the latest development, the company

Go to Source to See Full Article
Author: Priya NV

Did you like this?
Tip BTC Newswire with Cryptocurrency