Crypto: PayPal's stablecoin launches on Ethereum, in partnership with Paxos!
It’s here: a PayPal stablecoin! If the rumor had already been circulating, the payment company is embarking on a new course and taking the turn towards digital assets. It’s time to find out more about this new project.
The PayPal stablecoin is finally here!
The American payment giant is entering a new phase. Based in Silicon Valley, PayPal is treading new territory and announcing the launch of its stablecoin. In partnership with Paxos, the PayPal stablecoin or PYUSD will be indexed to the dollar and gradually made available to the company’s US-based customers.
According to the press release, the new token will be 100% backed by US dollar deposits, short-term treasury bills and similar cash equivalents. Success is great news, given that the evolution of the project has not been easy.
The company had halted issuance of its stablecoin following threats from the SEC. Indeed, the US regulator had forced Paxos to halt its flagship activity while the blockchain company collaborated with Binance on the BUSD issue.
When the payment company takes an interest in digital assets
PayPal is becoming increasingly interested in cryptocurrencies. While many institutions remain wary of them, the American giant is looking for ways to anchor its presence in the sector. In addition to a richly endowed portfolio in 2022, the company is also banking on Web3 to expand its business and win new markets.
Earlier this year, it invested $52 million in crypto firm Magic to support the company’s expansion in Asia and Europe. PayPal’s stablecoin is yet another sign of its commitment to emerging technologies. Eligible customers will be able to use it from today, and it will primarily be used to make purchases and transfers.
The rollout of PayPal’s stablecoin will continue over the coming weeks. The Ethereum-based project should have a bright future ahead of it. Indeed, the company’s vision is for stablecoin to become an integral part of the global payments infrastructure, according to statements by PayPal CEO Dan Schulman.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.