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- 1 PayPal launched PYUSD, a stablecoin fully backed by US dollar deposits, US treasuries, and similar cash equivalents.
- 2 NASDAQ: PYPL stock added $1.67 to its trading price on the August 8 trading session, following the launch of PYUSD.
On August 7, 2023, PayPal launched its stablecoin PayPal USD (PYUSD), which will be backed by US dollars, US treasuries, and cash equivalents.
With the launch of its stablecoin, PayPal aims to prove its relevance in the crypto industry. Paxos Trust Co. will issue these stablecoins.
According to PayPal, the recently launched stablecoin will be backed by “secure & highly liquid assets.” “ PYUSD can be used for buying, selling, holding, and transferring on the PayPal application and website,” the company added.
PayPal was established in 1998 in Palo Alto, California. eBay acquired PayPal for a sum of $1.5 Billion, and after investing $175.8 Million in PayPal, Elon Musk purchased 11.27% of the payment solution company.
PYUSD is easy to use as it can be converted into US dollars when needed, and the stablecoin can also be used to trade cryptocurrencies available on the ecosystem of PayPal, such as Bitcoin and many more.
Excluding PYUSD, there are 200 other stablecoins in the crypto industry; some of them are profitable, and others are facing losses. Data from CoinMarketCap reveals that Tether (USDT) is the most traded token in the entire crypto market, with an average trading volume of $23,569,885,869.
How PayPal Can Contribute to the Crypto Sector?
PayPal is ranked among the Fortune 500 companies, having 426 Million users worldwide. As per estimates, the number of users will likely cross the milestone of 500 Million by the end of 2023.
PYUSD is launched on the Ethereum blockchain, which is one of the most significant blockchain ecosystem on-chain data highlights that more than 3000 crypto projects are using Ethereum as their native blockchain.
PayPal has been working on its stablecoin for the last few months, but it is important to note that the company paused the development amid regulatory scrutiny.
PayPal is among the oldest players in the traditional finance system and is known for initiating the process of developing cashless in Western society. The involvement of PayPal in the crypto industry might help the digital asset industry to achieve fresh milestones.
Several finance analysts believe that PayPal’s involvement in crypto will help the industry reach many users as the company has the most extensive user base among all payment solution companies.
Crypto Holdings & Investments of PayPal
On March 31, 2023, PayPal revealed in a Securities and Exchange Commission filing that it had increased its digital assets holdings by 56%. Earlier in 2022, the total holdings of PYPL amounted to $604 Million, but after an increase in Q1 2023, it now holds $943 Million of crypto.
PayPal holds $499 Million in Bitcoin, $362 Million of Ethereum, and over $82 Million of Bitcoin Cash and Litecoins.
RootData, a data aggregator, revealed that PayPal Ventures have majorly invested in more than 12 crypto-focused companies, including Paxos, LayerZero, Aptos, Anchorage, Magic, Fordefi, TaxBit, Talos, TRM Labs, Lava, among others.
According to Crunchbase, It has raised around $5.2 Billion in funding and was majorly backed by BlueRun Ventures, Clearstone Venture Partners, Goldman Sachs, and Madison Dearborn Vertex Advertising.
PayPal has acquired more than 20 companies, including Paidy, Happy Returns, Curv, Honey, gopay, Simility, Hyperwallet, Jetlore, iZettle, and Swift Financial.
How Did PYUSD Launch Affect PayPal Stock Price?
NASDAQ: PYPL stock added $1.67 to its trading price on the August 8 trading session, and at the beginning of the session, sellers tried to capture their positions, but in the second half of the trading session, buyers successfully overruled sellers, which pushed the PYPL price upwards.
On Monday, PYPL stock opened at $63.02, lowering to $62.02; it hit a high of $64.75 and closed trading at $64.42 with an intraday trading volume of 23.738 Million. After analyzing the technical aspects of PYPL stock, it is noted that further surges are possible. It is expected to reach an immediate resistance of $75 by the end of this week.
Despite the intraday surge, PYPL lost over 13% weekly and 21.77% in 6 monthss. However, the stock is currently trading below its annual price target of $85.71.
Conclusion
PayPal has established itself in the traditional finance system and has been serving users since 1900. It has now entered the crypto space by launching PYUSD, a stablecoin developed on the Ethereum blockchain.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
