The most popular exchanges, wallets, and Web3 apps are all compatible with PayPal’s newly released stablecoin, which is connected to the US dollar and intended for usage in digital payments and Web3.
PayPal USD (PYUSD) can be exchanged 1:1 for US dollars and is completely backed by US dollar deposits, short-term US treasuries, and comparable cash equivalents.
Eligible US PayPal users who purchase PayPal USD will be able to send payments to other users, fund purchases at PayPal-accepting checkouts, and exchange cryptocurrency holdings into and out of PayPal USD starting today and rolling out over the next few weeks.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” says Dan Schulman, president and CEO, PayPal.
“Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
The majority of stablecoin usage at the moment occurs under web3-specific settings. According to Schulamn, Venmo will soon support PayPal USD, which will be compatible with that environment from the start.
Paxos Trust Company is in charge of overseeing PayPal USD, an ERC-20 token created on the Ethereum network. A monthly Reserve Report for PayPal USD that lists the instruments that make up the reserves will be made available to the public by Paxos in an effort to increase trust in the token. A public third-party attestation of the value of PayPal USD reserve assets will also be made available by Paxos.
