PayPal has announced the launch of PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin designed to transform payments in Web3 and digital-native environments. This fully regulated stablecoin combines PayPal's payment expertise with blockchain efficiency, offering seamless integration between fiat and digital currencies.
Key Features of PayPal USD (PYUSD)
- Fully Backed: Supported by 100% U.S. dollar deposits, short-term Treasuries, and cash equivalents.
- 1:1 Redemption: Can be exchanged for U.S. dollars at a fixed rate.
- Regulated Issuer: Issued by Paxos Trust Company, a NYDFS-regulated entity.
- Blockchain Integration: ERC-20 token on Ethereum, compatible with external wallets and Web3 apps.
Consumer Benefits
- Transfer PYUSD between PayPal and external wallets.
- Peer-to-peer payments and checkout purchases.
- Convert between PYUSD and other supported cryptocurrencies.
👉 Explore how PYUSD enhances digital payments
Bridging Fiat and Web3 Ecosystems
PayPal USD aims to reduce friction in digital transactions by:
- Enabling fast remittances and international payments.
- Supporting direct payments to creators/developers.
- Expanding utility for major brands in virtual environments.
Dan Schulman, PayPal CEO, emphasized: "Digital currencies require stability—PYUSD connects the digital and traditional financial worlds through responsible innovation."
Transparency and Compliance
- Monthly Reserve Reports: Starting September 2023, Paxos will disclose reserve holdings.
- Third-Party Audits: Independent verification of reserve assets.
- Regulatory Approval: Holds NYDFS BitLicense for cryptocurrency operations.
Education and Adoption
PayPal is committed to advancing crypto literacy through:
- Educational resources on risks/opportunities.
- Buy/sell/hold services for select cryptocurrencies.
- Collaboration with regulators on industry standards.
FAQ Section
Q: How is PYUSD different from other stablecoins?
A: It’s the only PayPal-network-supported stablecoin, combining regulatory compliance with PayPal’s payment infrastructure.
Q: Can merchants accept PYUSD?
A: Yes—it’s designed for both consumer and merchant use cases, including checkout payments.
Q: When will PYUSD be available on Venmo?
A: PayPal plans to roll it out "soon," following the initial U.S. launch phase.