PayPal Launches PYUSD Stablecoin on Venmo
PayPal, the prominent payment company, recently announced the launch of its own Ethereum-based stablecoin called PayPal USD (PYUSD). This dollar-backed cryptocurrency is issued by Paxos and designed for digital payments and Web3. Users of Venmo, PayPal’s mobile peer-to-peer payment app, now have access to PYUSD.
PayPal’s Stablecoin Available on Venmo
In a blog post released on August 7th, PayPal revealed that PYUSD is now available for selected Venmo users. This stablecoin is fully backed by deposits in US dollars, short-term government bonds, and similar cash equivalents. PayPal mentioned that it will roll out the feature in the coming weeks, although no specific timeframe was provided.
Venmo was launched in 2009 and was acquired by PayPal four years later. It allows users to easily transfer money to friends and family through their mobile devices.
Venmo users can purchase and send PYUSD via PayPal, Venmo, and compatible external wallets. According to the blog post, PYUSD transactions between Venmo and PayPal will be free of charge. However, network fees will still apply for transactions to external wallets and merchants accepting PYUSD.
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PYUSD Crypto Adoption
Aside from the announcement, PayPal expressed its joy in seeing PYUSD being integrated into native crypto experiences and becoming more widely available as the ecosystem grows.
PayPal also provided a list of platforms where PYUSD is already available:
“In the few weeks since its launch in the open market, PYUSD is already present on selected exchanges, including Crypto.com, Bitstamp, Coinbase, and Kraken, as well as leading wallets such as MetaMask, Ledger, and Phantom. It is also being supported by custodians and institutional service providers such as Fireblocks, Copper, Paxos, and Fordefi, as well as crypto payment service providers like Bitpay. Additionally, it has been added to the New York State Department of Financial Services’ (NYDFS) list of approved cryptocurrencies, making it easier for licensed virtual asset companies in New York to support PYUSD. Bitcoin (BTC), ethereum (ETH), and other stablecoins issued by Paxos, GMO Trust, and Gemini are also included in this ‘greenlist,’ while many different altcoins were recently removed from it.”
In conclusion, PayPal’s launch of PYUSD stablecoin on Venmo provides users with a convenient way to engage in digital payments within the Ethereum ecosystem. The broad adoption and integration of PYUSD within various platforms and services further validate its potential as a trusted and widely accepted stablecoin.