That’s it, it’s done, a PayPal stablecoin! If the rumor had already circulated, the payment company is embarking on a new course and is taking the turn towards digital assets. It’s time to learn more about this new project.
The PayPal stablecoin finally arrives!
The American payment giant is entering another phase. Based in Silicon Valley, PayPal is treading new ground and announcement the launch of its stablecoin. In partnership with Paxos, the stablecoin PayPal or PYUSD will be pegged to the dollar and gradually made available to the company’s US-based customers.
According to Press release, the new token will be 100% collateralized by US dollar deposits, short-term treasury bills, and similar cash equivalents. The success is great news, given that the evolution of the project has not been easy.
The company had halted the issuance of its stablecoin following threats from the SEC. Indeed, the American regulator had forced Paxos to put an end to its flagship activity while the blockchain company was collaborating with Binance on the issuance of BUSD.
When the payment company is interested in digital assets
PayPal is increasingly interested in cryptocurrencies. While many institutions continue to be wary of it, the American giant is looking for ways to anchor its presence in the sector. In addition to a rich portfolio in 2022, the company is also banking on Web3 to expand its activities and win new markets.
Earlier this year, it invested $52 million in crypto firm Magic to support the company’s expansion into Asia and Europe. PayPal’s stablecoin is one more mark of its commitment to emerging technologies. Eligible customers will be able to use it starting today, and it will be used primarily for making purchases and making transfers.
The rollout of PayPal’s stablecoin will continue in the coming weeks. The Ethereum-based project should have a bright future ahead of it. Moreover, the company’s vision is for the stablecoin to become an integral part of the global payments infrastructure according to statements by Dan Schulman, the CEO of PayPal.
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