PayPal has launched a new stablecoin called PayPal USD (PYUSD) on August 7, 2023.
A stablecoin is a type of cryptocurrency whose value is pegged to an underlying asset, typically a fiat currency like the U.S. dollar.
PayPal USD is fully backed by U.S. dollar deposits, short-term U.S. Treasuries and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.
It is issued by Paxos Trust Company.
PayPal USD is designed to contribute to the opportunity stablecoins offer for payments and reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world.
It is the first dollar-backed digital currency from a major U.S. financial institution.
Starting today and rolling out in the coming weeks, eligible U.S. PayPal customers who purchase PayPal USD will be able to transfer PayPal USD between PayPal and compatible external wallets, send person-to-person payments using PYUSD, fund purchases with PayPal USD by selecting it at checkout, and convert any of PayPal’s supported cryptocurrencies to and from PayPal USD.
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