PayPal launches a cryptocurrencies hub featureIn a significant move, PayPal’s stablecoin, PYUSD, debuted on Venmo. Initially, a select group of users will have access to this feature. However, it will be available to the broader public in the coming weeks. This development allows Venmo users to purchase PYUSD using their balance. Moreover, they can transfer it to anyone with a Venmo, PayPal, or a compatible external wallet.
Additionally, Venmo users can now send funds to anyone possessing an external wallet compatible with the service. This extends to businesses that accept PYUSD payments. However, users should note that blockchain networks come with associated costs.
Paxos Trust Company issues PYUSD. It’s backed by deposits in U.S. dollars, short-term U.S. Treasuries, and other cash equivalents. Significantly, Paxos’s initial contribution was approximately $24.9 million. According to Etherscan data, the current circulation of PYUSD stands at a noteworthy $44.376 million.
Besides its integration into Venmo, PYUSD has marked its presence in native crypto experiences. It’s now available on select exchanges such as Crypto.com, Bitstamp, Coinbase, and Kraken. Leading wallets like MetaMask, Ledger, and Phantom also support it. Custodians like Fireblocks, Copper, Paxos, and Fordefi have also embraced PYUSD. Furthermore, crypto payment service providers like Bitpay and several decentralized applications have incorporated it.
The New York State Department of Financial Services has given its nod of approval for PYUSD. This endorsement adds another layer of credibility to the stablecoin.
Stablecoins, pegged to traditional currencies or commodities, have been the center of much discussion. Meta, for instance, had to abandon its plans for its stablecoin, Diem, due to regulatory concerns. Similarly, PayPal reportedly paused its stablecoin development due to heightened regulatory scrutiny.
However, PayPal’s foray into the crypto realm has been around for a while. In 2020, it became the pioneer online payment provider to offer U.S. customers cryptocurrency-related services. They could purchase, store, and trade them. In 2021, the company unveiled “Checkout with Crypto.” This tool enabled users to make online purchases using Bitcoin. Additionally, PayPal started allowing users to transfer Bitcoin to other exchanges.
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