PayPal launches its dollar-backed stablecoin
PayPal, a popular global payment system, has unveiled its U.S dollar-backed stablecoin — PayPal USD. It will be issued by Paxos Trust Co. This strategic move underscores the growing popularity of electronic payments and digital currencies.
With its steadfast connection to a fiat currency, stablecoins emerge as an enticing option for individuals seeking to use cryptocurrency for transactions or payments, all while sidestepping the inherent volatility risks.
PayPal’s President and CEO Dan Schulman emphasized the necessity of a reliable instrument for the further spread. Leveraging the company’s unwavering commitment to regulatory compliance and a track record of implementing new possibilities, the groundwork is laid for an exponential surge in digital payments through PayPal USD.
PayPal already provides electronic payment and transfer services, but the company is poised to broaden its offerings with the introduction of a stablecoin. The representatives have expressed that the widespread adoption of this stablecoin will enable users to buy, sell, store, and transfer funds via the PayPal website or app.
Moreover, clients will gain the advantage of converting their PayPal USD into various other cryptocurrencies that are supported by the platform. Notably, PayPal’s stablecoin is pegged to the US dollar and is fully backed by assets like US Treasury securities, dollar deposits, and similar monetary instruments. This venture marks a significant step for PayPal, building upon its prior involvement in the cryptocurrency sphere. The company previously rolled out support for purchasing, selling, and holding Bitcoin on its platform, along with introducing its own crypto wallet application.
In the current landscape, PayPal has emerged as a major player in the payment industry, offering users the convenience of integrating cryptocurrencies into their day-to-day transactions.