PayPal’s Stablecoin PYUSD Now Available on Venmo
Last month, PayPal announced the launch of its payment stablecoin, PayPal USD (PYUSD). Now, Venmo users can also transact with this stablecoin. While initially available to select users, access will expand to all Venmo users in the coming weeks. Venmo, a mobile payments app owned by PayPal, allows users to buy and send PYUSD to other Venmo users and PayPal wallets.
Free Stablecoin Transfers and Wallet Interoperability
One of the key features of this integration is that PayPal offers free stablecoin transfers between PayPal and Venmo users. This marks a significant milestone in wallet interoperability at scale. In addition, individuals using compatible external wallets and merchants accepting payments in PYUSD can receive transfers from Venmo users. However, it is important to note that blockchain network fees will still apply.
PYUSD: An Ethereum-Based Stablecoin
PYUSD is an Ethereum-based stablecoin pegged to the U.S. dollar. It was launched by PayPal in August. Currently, users can purchase PYUSD on various exchanges such as Crypto.com, Coinbase, and Kraken. Stablecoins are digital assets that are tied to stable values like the U.S. dollar. PayPal’s stablecoin is backed by a combination of USD deposits and short-term treasuries.
Market Cap and Recent Developments
As of now, PYUSD’s market cap stands at $44.3 million, which is significantly lower compared to stablecoin giants like Tether (USDT) and USD Coin (USDC). Paxos Trust holds $45.3 million in assets backing PYUSD, according to a recent report.
Paxos Trust recently claimed responsibility for a peculiar Bitcoin transaction that involved a $500,000 transaction fee. Initially, blockchain analysts attributed the transaction to PayPal.
Hot Take: PayPal’s PYUSD Expands Its Reach on Venmo
PayPal’s move to make PYUSD available on Venmo is a significant step towards mainstream adoption of stablecoins. By allowing Venmo users to transact with PYUSD, PayPal is expanding the usability and accessibility of its stablecoin. The integration also promotes wallet interoperability and provides users with a seamless experience in sending and receiving stablecoin transfers. As more users gain access to PYUSD on Venmo, it will be interesting to see how this impacts the overall market for stablecoins and whether PayPal can catch up to the market leaders.
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