PayPal is launching a fully-backed stablecoin, PayPal USD, backed by US dollar deposits and similar assets, aiming to enhance payments in Web3.
Facts
- PayPal is introducing a stablecoin named PayPal USD to leverage the potential of regulated stablecoins for transforming Web3 payments.
- The stablecoin is supported by US dollar deposits, short-term US Treasuries, and comparable cash equivalents. It is issued by Paxos Trust Company and can be exchanged for US dollars.
- Initially delayed due to regulatory scrutiny in February, PayPal has resolved the issues and is preparing to launch the stablecoin in the near future.
- Eligible US PayPal customers can purchase, transfer, send person-to-person payments, make purchases, and convert supported cryptocurrencies to and from PayPal USD.
- PayPal’s stablecoin aims to simplify in-experience virtual payments, enable quick transfers for various purposes, support international payments and remittances, and foster expansion into digital assets.
- Dan Schulman, PayPal’s CEO, emphasizes the need for a stable instrument that bridges digital currencies and fiat like the US dollar, highlighting their commitment to responsible innovation and compliance.
