Digital Assets: PayPal Is The First Major Finance Company In The USA To Issue A Stablecoin

The stablecoin, dubbed Paypal USD (PYUSD), will be issued by the Paxos Trust and backed 100% by US Dollars or cash equivalents.

PayPal (NASDAQ: PYPL) has introduced a stablecoin called PayPal USD (PYUSD), which is backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents. The stablecoin can be redeemed 1:1 for U.S. dollars. This move is aimed at harnessing the potential of stablecoins in web3 and digital native environments. PayPal USD is designed for digital payments and Web3 compatibility and will be accessible on various platforms.

It is issued by Paxos Trust Company and will be usable for transfers, person-to-person payments, funding purchases, and cryptocurrency conversions. The stablecoin is meant to bridge the gap between fiat and digital currencies, allowing seamless connections for consumers, merchants, and developers. It’s built on the Ethereum blockchain as an ERC-20 token, which ensures its compatibility with various web3 applications.

PayPal’s dedication to responsible innovation and adherence to compliance form the foundation of its pledge to enhance the expansion of digital payments through PayPal USD. The stablecoin’s reserves are entirely supported by U.S. dollar assets, the company said, and it will uphold a transparent reporting mechanism to guarantee the integrity of its reserve value.

Starting from September 2023, Paxos will release a monthly public Reserve Report for PayPal USD, detailing the components of the reserves. Additionally, Paxos will provide a public third-party validation of the value of PayPal USD reserve assets. This validation will be carried out by an independent accounting firm, following the attestation standards set by the American Institute of Certified Public Accountants (AICPA).

Additionally, PayPal is striving to enhance public understanding and adoption of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs) while collaborating with regulators. Apart from offering PayPal USD for U.S. account holders, PayPal provides educational resources about cryptocurrency risks and possibilities.

Related Story:  NAB Launches AUDN, A Stablecoin Backed By The Australian Dollar

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Epic Lays Off 830 Employees As Metaverse Underperforms
September 29, 2023     Digital Assets, News

Earlier today, Tim Sweeney, the head of Epic Games, shared an email with the company’s employees, announcing some significant changes within the organization. In this message, Sweeney discussed the necessity…
Artificial Intelligence: Mysterious US-Based Books3 Dataset Used To Train AI Was A Massive Trove Of Pirated Books
September 29, 2023     Artificial Intelligence, Latest News, News

Thousands of books penned by some of Australia’s most esteemed authors may have fallen victim to what Booker prize-winning novelist Richard Flanagan has described as “the biggest act of copyright…銅鑼灣_Causeway_Bay_銅鑼灣時代廣場_Times_Square_office_Tower_One_阿里巴巴_Alibaba_Hong_Kong_June_2022_Px3_03.jpg
FinTech: Ant’s Chongqing Consumer Finance Arm Raising $616M To Ramp Up Loans
September 29, 2023     FinTech, News

Chongqing Consumer Finance, the consumer finance arm of Ant Group, a prominent player in China’s financial technology landscape, is currently in the process of raising a substantial sum of fresh…
Venture Capital: Mercury’s Fund V Mops Up $160M For US Startups “Between The Coasts”
September 29, 2023     News, Venture Capital

Mercury Fund, the premier early-stage venture firm with a focus on non-coastal tech hubs, has successfully closed its largest fund to date, Mercury Fund V, with a total capital commitment…