PayTech giant PayPal has launched its own US dollar denominated stablecoin, designed for digital payments, PayPal USD (PYUSD).
The eponymous stablecoin can be redeemed 1:1 for US dollars, and is fully backed by US dollar deposits, short-term US treasuries, and similar cash equivalents.
PayPal USD is set to be utilised for digital payments and Web3, and to be compatible with the most widely used exchanges, wallets and Web3 apps.
Dan Schulman, president and CEO of PayPal said: “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar.
“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.”
Throughout the coming weeks, eligible US PayPal customers who purchase PayPal USD will be able to transfer the token to external wallets, send person-to-person payments, fund purchases at checkouts supported by PayPal, and convert cryptocurrency holdings to and from Paypal USD.
As an ERC-20 token issued on the Ethereum blockchain, PayPal USD is managed by Paxos Trust Company.
The organisation will publish a monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves in an effort to build consumer trust in the ERC-20 token.
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