Venmo Users Can Soon Buy PayPal’s Stablecoin
PayPal has announced that Venmo users will soon have the ability to purchase the payment platform’s stablecoin. The company stated that select users on Venmo can already buy PayPal USD (PYUSD), and this option will be available to all users in the coming weeks. PYUSD is an Ethereum-based stablecoin pegged to the US dollar and backed by cash equivalents and short-term treasuries. It was launched by PayPal in August, with Paxos Trust Co. being the issuer of the token.
Buying and Sending Stablecoins on Venmo
Venmo, a popular mobile payments app owned by PayPal, allows users to pay friends or merchants. With this new feature, users will be able to purchase the stablecoin and send it to other Venmo users, including PayPal wallets. PayPal claims that this will be the first time users can send stablecoins to each other at no cost. However, fees will apply when sending from Venmo to a different crypto wallet not owned by PayPal.
The Significance of Stablecoins
In the world of cryptocurrency, stablecoins are digital assets pegged to something stable, such as the US dollar. They are commonly used by traders who need a seamless way to exit transactions when they don’t have immediate access to fiat currencies held in traditional banks. PayPal aims for its stablecoin to become a part of the overall payments infrastructure. However, it still has a long way to go compared to major stablecoins like Tether (USDT) and USD Coin (USDC), which have market caps of $83.1 billion and $25.9 billion, respectively.
Hot Take: Venmo Expands Crypto Offerings with Stablecoin Integration
Venmo’s integration of PayPal’s stablecoin represents a significant step forward in expanding its cryptocurrency offerings. By allowing users to buy and send stablecoins, Venmo is tapping into the growing demand for digital assets and providing a convenient way for users to engage in crypto transactions. While PayPal’s stablecoin may have a smaller market cap compared to other major stablecoins, its integration with Venmo could help drive adoption and increase its user base. As cryptocurrencies continue to gain mainstream acceptance, this move positions Venmo as a player in the evolving landscape of digital payments.