PayPal has unveiled its PYUSD stablecoin, designed for payments and transfers, on its subsidiary platform, Venmo. While the initial release is limited to select users, a full rollout is expected in the coming weeks. Venmo users will now have the ability to purchase PYUSD and send it to others on PayPal, Venmo, and compatible external wallets.
PayPal's Crypto Journey
PayPal's foray into the cryptocurrency space began in 2020 when it allowed U.S. users to buy, hold, and sell cryptocurrencies.
In 2021, the company introduced "Checkout with Crypto," enabling consumers to use cryptocurrency for payments at millions of online businesses.
In 2022, PayPal expanded its services, allowing users to transfer cryptocurrency from their accounts to external wallets and exchanges.
Last month, August 7th, PYUSD was introduced, which is issued by the Paxos Trust Company and is backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents.
Initially, approximately $24.9 million worth of PYUSD originated from Paxos's treasury. Presently, the total supply of circulating PYUSD stands at $44.376 million, according to data from Etherscan.
Regulatory Compliance
Stablecoins, like Paypal USD, are cryptocurrencies whose value is pegged to external assets, such as the U.S. dollar. However, they have faced regulatory scrutiny and controversy in recent times.
Due to regulatory challenges, Meta abandoned its stablecoin project (Diem). PayPal itself temporarily halted its stablecoin efforts earlier this year amid regulatory concerns in the crypto space.
Recently, PYUSD has received the green light from the New York State Department of Financial Services, indicating its compliance with regulatory standards.
Widespread Adoption
PayPal emphasized the growing presence of PYUSD in the cryptocurrency ecosystem, with listings on various exchanges, including Crypto.com, Bitstamp, Coinbase, and Kraken.
The stablecoin is also supported by prominent wallets like MetaMask, Ledger, and Phantom, as well as custodians such as Fireblocks, Copper, Paxos, and Fordefi. Additionally, it is integrated with crypto payment service providers like Bitpay and has gained support from widely used decentralized applications.
Interoperability with External Wallets and Merchants
PYUSD holders using compatible external wallets and merchants willing to accept payments in PYUSD will also be able to receive transfers from Venmo users. However, it's important to note that blockchain network fees will apply to these transactions.
Follow Us on Facebook
