Paypal Revolutionizes Payments with PYUSD Dollar-Backed Stablecoin
Paypal, a pioneering financial giant, has unveiled a groundbreaking move with the launch of its very own stablecoin, PYUSD. This innovative step is poised to redefine the landscape for cryptocurrency integration in the digital payments ecosystem.
Paypal's PYUSD Sets New Crypto Standard with Seamless Transactions
Financial giant Paypal set new crypto standards with the goal of seamless transactions by introducing the PYUSD dollar-backed stablecoin into the broader payments ecosystem. Dan Schulman, the CEO of Paypal, outlined an inspiring vision during his interview with Bloomberg. He stated:
“The vision over time is that this becomes a part of the overall payments infrastructure.”
Named "Paypal USD (PYUSD)," this digital currency is backed by Paxos Trust Co. and is supported by secure US dollar deposits, short-term Treasury securities, and similar low-risk assets. Tethered to the US dollar, PYUSD is set to gradually become accessible to Paypal's extensive US customer base.
PYUSD Poised to Be the Digital Payments Leader
PYUSD represents a strategic move for Paypal, aiming to consolidate its position as a digital transaction leader through efficient technology that enables swift and cost-effective transfers without intermediaries. This exciting development follows earlier reports in February that highlighted regulatory concerns that caused a temporary halt to Paypal's stablecoin project. A spokesperson reassured that any future progress would involve close collaboration with financial regulatory bodies.
In its initial stages, PYUSD will cater to cryptocurrency trading and facilitate seamless payments for games and applications. Paypal envisions a future in which this stablecoin will revolutionize remittances and micropayments, reports Anna Irrera from Bloomberg. Users will experience the ease of transferring PYUSD between Paypal and Venmo wallets, with Paxos entrusted to provide comprehensive reserve reports and third-party attestations for this stablecoin.
Meanwhile, Paxos has witnessed a noteworthy decline in the supply of its stablecoins, BUSD and USDP, over the past year. BUSD's supply dwindled by 15.6% in the last 30 days, and USDP experienced a significant 34.1% reduction this month. Paxos encountered regulatory directions from the New York Department of Financial Services (NYDFS) in mid-February, compelling a halt in BUSD issuance.
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