PayPal has launched a USD stablecoin called PYUSD, which can be used for transfers and payments.

Original Title: "Milestone Moment! A Quick Look at PayPal's USD Stablecoin"

Original Source: Paypal

Original Translation: Foresight News

Tonight, PayPal launched a major stablecoin for transfers and payments called PayPal USD (PYUSD). PYUSD is issued by Paxos Trust Company and is 100% backed by deposits in US dollars, short-term US government bonds, and similar cash equivalents.

Starting today, PYUSD will be gradually rolled out in the coming weeks. Eligible US PayPal customers who purchase PYUSD will be able to transfer PYUSD between PayPal and compatible external wallets, use PYUSD for peer-to-peer payments, select PYUSD at checkout, and convert PayPal-supported cryptocurrencies to PayPal USD.

Building bridges between fiat and Web3 for consumers, merchants, and developers

PayPal USD will seamlessly connect fiat currency and digital currency for consumers, merchants, and developers. PayPal states that as the only stablecoin supported within the PayPal network, PayPal USD leverages decades of experience in large-scale payments, combined with the inherent efficiency, cost-effectiveness, and programmability of blockchain. Additionally, as an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be available for use by external developers, wallets, and Web3 application communities, and can easily be adopted by exchanges, enhancing the PayPal ecosystem experience.

PayPal USD aims to reduce payment friction in virtual environments, facilitate value transfer, remittances or international payments, and provide a payment method that flows directly to developers and creators.

In addition, PayPal USD has been compatible with the Web3 ecosystem since its launch and will soon be available on Venmo.

USD-denominated, redeemable and transparent 

PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company that is regulated by the New York State Department of Financial Services. In June 2022, PayPal obtained a conditional BitLicense and was subsequently issued a BitLicense by NYDFS.

The reserve of PayPal USD is fully supported by deposits in US dollars, US government bonds, and similar cash equivalents. PayPal USD can be bought or sold through PayPal at a price of $1.00 per PayPal USD.

Starting from September 2023, Paxos will publicly release the PayPal USD monthly reserve report and also provide public third-party verification of the value of PayPal USD reserve assets. The verification will be issued by an independent third-party accounting firm and will be conducted in accordance with the auditing standards established by the American Institute of Certified Public Accountants (AICPA).

Focus on education, understanding, and adoption of digital currencies 

In addition to creating products and services that increase the usability of digital currencies, PayPal is also committed to improving consumer and merchant understanding of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs), while working closely with regulatory agencies as the industry develops. It is worth mentioning that in addition to offering PayPal USD to US account holders, PayPal currently provides customers with the ability to buy, hold, sell, and transfer mainstream cryptocurrencies, and offers educational content to help users understand relevant knowledge and risks.

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