PayPal, in Collaboration with Paxos, Launches New Stablecoin PYUSD, Pegged to the Dollar and Issued on the Ethereum Blockchain
PayPal launches PYUSD stablecoin, backed by USD and issued on Ethereum. Available now for transfers and purchases, with more services to come.
Payment giant PayPal, in collaboration with Paxos, has announced the launch of PayPal USD (PYUSD), its new stablecoin. PYUSD, anchored to the dollar and backed by short-term Treasury securities, will soon be available to all users in the United States and will utilize the Ethereum network for its issuance.
"The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar," stated Dan Schulman, CEO of PayPal, in a recent press release. "Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD."
Rumors of PayPal's plan to develop and release its stablecoin have been circulating online since 2021, and they were credible. The project has been ongoing since then, and despite some setbacks, it has reached its conclusion.
Now, PayPal customers can make transfers and purchases in stablecoin, with the option to convert their funds into cryptocurrency. PYUSD is available immediately, and a series of services related to the stablecoin will be launched in the coming weeks.
The fact that the new token was launched on Ethereum suggests many updates are on the horizon. Ethereum's broad community, many external developers, and the cutting edge of Web3 applications make it an ideal space for growth.