DIKSIA.COM - CALIFORNIA, Payments processor PayPal (PYPL) is exploring the digital asset business by launching a US dollar-based stablecoin. This initiative emerged after investors showed bullishness in the global crypto market and many consumers turned to stablecoins as a means of trading cryptocurrencies like Bitcoin against Ethereum.
This then prompted PayPal to launch a secure and regulated stablecoin.
“Our commitment to innovation and responsible compliance, as well as our track record of delivering new experiences for our customers, provides the necessary foundation to help grow digital payments through PayPal USD,” said PayPal CEO Dan Schulman.
Unlike other stablecoins, PayPal's PYUSD stablecoin is based on US dollar denominations and short-term bonds (US Treasuries).
Thus, Paypal USD tokens can not only be used to buy and sell cryptocurrencies, but also exchanged for US dollars anytime, anywhere, as quoted by Reuters.
“PYUSD is the first of its kind and represents the next phase of the US dollar on the blockchain. This is not just a turning point for Paxos and PayPal, but for the entire financial industry,” Paxos said on Platform X.
Prior to its official release on Feb. 11, the existence of a stablecoin that could be traded 1:1 with the US dollar was on the verge of failure due to the impact of crypto trading intensification by American Securities.
However, the PYUSD stablecoin can finally be released and used by the American people after Paypal partnered with crypto exchange Paxos in September to release a monthly public PYUSD reserve report with supporting tools for PYUSD reserves.
The report is approved by an independent third-party accounting firm and is in accordance with the certification standards of the American Institute of Certified Public Accountants (AICPA).
Regarding the launch of the PYUSD stablecoin, PayPal President and CEO Dan Schulman said that PYUSD will be featured in a number of third-party developers, crypto wallets, and large and growing Web3 applications. This way, people can more easily access this stablecoin
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