PayPal launches US dollar stablecoin PayPal USD
PayPal is set to launch a US dollar-denominated stablecoin, PayPal USD, in a bid to address the emerging potential of fully-backed and regulated stablecoins to transform payments in Web3.
PayPal launches US dollar stablecoin; Image source: PayPal
Fully backed by US dollar deposits, short-term US Treasuries and similar cash equivalents, PayPal USD is issued by Paxos Trust Company and can be redeemed for US dollars.
In February, PayPal had reportedly halted work on its stablecoin offering amid increasing regulatory scrutiny, resulting in a delay of its launch.
However, it seems as if things are now resolved, as PayPal will be rolling it out in the coming weeks and making the stablecoin available to purchase for eligible US PayPal customers, who will be able to transfer it between PayPal wallets, send person-to-person payments with it, make purchases at checkout, and convert PayPal-supported cryptocurrencies to and from PayPal USD.
PayPal says the stablecoin has been “designed to reduce friction” for in-experience payments in virtual environments, enable quick transfers of value to support friends and family, send remittances and make international payments, and foster the continued expansion into digital assets.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” says Dan Schulman, president and CEO, PayPal.
“Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
