PayPal Integrates PYUSD Stablecoin To Venmo
PayPal's PYUSD stablecoin is now accessible to Venmo users, backed by U.S. dollar deposits and other cash equivalents.
On September 20, PayPal revealed that its PYUSD stablecoin, pegged to the U.S. dollar, is now accessible to Venmo users. This rollout is expected to be completed in the coming weeks, making the stablecoin widely available to the platform's vast user base.
PYUSD is an Ethereum-based stablecoin, backed by U.S. dollar deposits, short-term Treasurys, and other cash equivalents. Paxos Trust Co., a regulated financial institution, is responsible for issuing the token. Stablecoins like PYUSD offer a semblance of stability. They are digital assets pegged to stable entities, such as the U.S. dollar in the case of PYUSD. This pegging provides traders with a reliable exit strategy, especially when they lack immediate access to traditional fiat currencies.
PayPal USD issued by Paxos is now available on @Venmo to select users and will be rolling out fully in the coming weeks!@PayPal USD is unlocking the future of money movement. Learn more here: https://t.co/qgDagf5kB5 pic.twitter.com/ustKT0T0E2 — Paxos (@Paxos) September 20, 2023
Launched in August, PayPal envisioned PYUSD as a crucial component of the payments infrastructure. Since its inception, PYUSD has made its mark on several top cryptocurrency exchanges. Platforms like Crypto.com, Coinbase, Bitstamp, and Kraken have already integrated PYUSD, allowing users to trade the stablecoin seamlessly.
While PYUSD has shown promise, but it still has a long way to go before it can rival the leading stablecoins. As of now, PYUSD's market cap is approximately $44.3 million. In contrast, leading stablecoins like Tether (USDT) and USD Coin (USDC) have market caps of $83.1 billion and $25.9 billion, respectively.
PayPal's association with cryptocurrencies isn't new. The company began accepting digital asset payments in 2021 and has since established mechanisms for Web3 payments in 2023. Moreover, the New York State Department of Financial Services has greenlit PYUSD, further solidifying its position in the market.
Venmo, a widely-used mobile payment application under PayPal's ownership, enables users to send money to friends or pay businesses. Users can purchase the stablecoin and transfer it to other Venmo accounts, as well as to PayPal wallets, with no fees. However, the company also noted that transferring from Venmo to an external crypto wallet not under PayPal's control would come with associated fees.