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- 1 Payment Giant, PayPal is all set to launch its 1:1 dollar pegged stablecoin, PYUSD.
- 2 PYUSD can be used for purchases and transactions.
- 3 The stablecoin was launched on 7th August 2023.
Cryptocurrencies are taking their spot in the financial sector in line with their fame and widespread adoption. In the contingency, many companies across sectors are seeking ways to leverage the growth of burgeoning asset classes. Recently, payment giant PayPal (NASDAQ: PYPL) steps in deep within the digital assets sector. It brings a native dollar-pegged stablecoin dubbed PayPal USD (PYUSD).
PayPal officially announces the launch of PYUSD, its 1:1 dollar-pegged stablecoin, and users can buy through an application or website. The stablecoin serves operations similar to the other payment methods.
Users can use PYUSD for interpersonal transactions and make purchases in exchange for using it as currency. It can be transferred across PayPal native wallets as well as other wallets.
According to the company, PYUSD is an ERC-20 token based on the Ethereum blockchain network. Prominent stablecoin issuer “Paxos Trust Company” will be issuing the stablecoin.
PayPal CEO and president, Dan Schulman said, “the shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.”
Though the stablecoin launched on Monday, August 7th, it will be available in the next coming weeks. Users in the United States would be able to access it through their PayPal balance accounts.
PYUSD is another step for the payment giant toward the crypto space. The company already facilitates its users to use cryptocurrencies for making purchases, selling, and transferring over the platform. It includes leading crypto assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
It holds the New York BitLicense which the company received last year. This makes the users on the platform eligible to buy and sell crypto assets within the region.
PayPal stock price saw a slight up move in the last intraday trading session following the news. Currently, the stock is trading at $64.4 following a gain of 2.6% in a day.
Stablecoins hold a unique position within the broader cryptocurrency market due to their upper hand over the other assets. Since its inception, the concern of volatility follows the crypto assets. This always hindered its mainstream use as a payment method and rather people opted to use it for investment purposes.
However, the landscape saw a change following the stablecoin rise. Such crypto assets brought all the features including security, faster and cheaper cross-border transactions, etc. In addition, it was not volatile given its peg with any given commodity be it fiat currencies in most cases.
The stablecoin market saw a rise with the growing popularity of crypto assets and accumulated significant market capitalization. Tether (USDT), for instance, holds the position of biggest stablecoin with a market cap of more than $83 Billion.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
