PayPal Launches its Own Stablecoin: PayPal USD
PayPal is making further strides into the crypto industry by introducing its very own stablecoin called PayPal USD. The dollar-pegged stablecoin, issued by Paxos Trust Co., is expected to become an integral part of PayPal’s overall payments infrastructure. Backed by short-term treasuries, dollar deposits, and cash equivalents, PayPal USD will be issued on the Ethereum network as an ERC-20 token.
Key Points:
- PayPal CEO, Dan Schulman, stated that PayPal USD will be a part of the company’s payments infrastructure.
- The stablecoin is backed by short-term treasuries, dollar deposits, and cash equivalents.
- PayPal and Paxos have not yet responded to Decrypt’s request for comment.
- Stablecoins are cryptocurrencies that track the price of a fiat currency.
- PayPal’s offering is expected to work alongside its existing crypto offerings, allowing users to swap the stablecoin for cash or other assets on the platform.
This move marks the latest development in PayPal’s entry into the crypto industry. In March 2021, the company introduced a crypto checkout service for merchants, enabling users to pay with cryptocurrencies. In May of the same year, PayPal expanded its crypto offerings by allowing users to buy Bitcoin on the platform and transfer it elsewhere.
This story is breaking and will be updated shortly.
Hot Take:
PayPal’s launch of its own stablecoin, PayPal USD, further solidifies its position within the crypto industry. By offering a dollar-pegged stablecoin backed by reputable assets, PayPal aims to enhance its payments infrastructure and provide users with more options for utilizing cryptocurrencies. This move demonstrates PayPal’s commitment to staying at the forefront of digital payments and facilitating the mainstream adoption of cryptocurrencies.
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