PayPal Launches Dollar-Pegged Stablecoin For Payments

PayPal has announced the launch of a US dollar-pegged stablecoin.

Leading payments giant PayPal has taken another step into the crypto sector by launching a dollar-pegged stablecoin. According to a press release today, the stablecoin is backed by short-term US Treasuries, US dollar deposits, and cash equivalents.

Dubbed PayPal USD, the stablecoin will be issued by Paxos Trust Co. Notably, Paxos will publish a monthly Reserve report for the stablecoin from September 2023.

Furthermore, Paxos will also issue a public third-party attestation of the stablecoin’s reserve assets.

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PayPal USD to Work With Other Offerings

PayPal USD is expected to work alongside the company’s other cryptocurrency offerings. Per the announcement, users can transfer the stablecoin from their PayPal accounts to other external wallets.

In addition, users can also swap the dollar-denominated stablecoin for cash or other supported crypto assets. Furthermore, users can make purchases using PayPal USD. The stablecoin will be redeemable 1:1 for US dollars.

PayPal CEO Reacts

Commenting on the development, PayPal’s CEO Dan Schulman noted that the shift towards digital currencies requires a stable instrument that is digitally native and easily connected to fiats, like the US dollar.

“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,” Schulman added.

In a statement sent to Bloomberg, Schulman said the newly-launched stablecoin would play a significant role in the company’s overall payment infrastructure.

The Stablecoin Will Be Issued on Ethereum

Meanwhile, PayPal USD will be issued on the Ethereum blockchain, thus making it available to a large community of external developers, web3 applications, and wallets.

PayPal disclosed that the stablecoin will soon be available on its social payment service Venmo.

The development comes less than a year after PayPal filed a trademark application to expand its cryptocurrency offerings. As reported, PayPal disclosed in its filing that it plans to launch a stablecoin.

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• Source: https://thecryptobasic.com/2023/08/07/paypal-launches-dollar-pegged-stablecoin-for-payments/?utm_source=rss&utm_medium=rss&utm_campaign=paypal-launches-dollar-pegged-stablecoin-for-payments