This development follows the revelation of the new PayPal dollar-backed stablecoin initiative over a year ago. The stablecoin, created in partnership with Paxos Trust Co, will allow customers to transfer it between compatible external wallets and their PayPal accounts and use it for funding purchases.
The availability of the stablecoin began on Monday, and PayPal users will gradually gain the ability to purchase, send, convert, and fund transactions in the upcoming weeks. In any case, the event marks a significant milestone as a prominent U.S. financial company enters the stablecoin space for the first time.
PayPal confirmed their stablecoin related endeavors back in early 2022, building upon the earlier integration of cryptocurrency services in 2021, which enabled users to engage with major digital assets like Bitcoin (BTC) and Ether (ETH).
PayPal CEO Dan Schulman emphasized the need for a stable digital instrument connected to fiat currency, such as the United States Dollar, to support the ongoing global shift towards digital currencies.
Paxos will be responsible for regularly publishing a Reserve Report outlining the backing and value of the stablecoin, including assets like U.S. Treasuries and equivalent cash reserves. Paxos CEO Charles Cascarilla expressed pride in facilitating this transformative financial product.
Functioning as an ERC-20 token on the Ethereum network, the PayPal USD stablecoin exemplifies the desire to initiate responsible innovation and compliance while contributing to the advancement of digital payments.
The announcement predictably prompted a call for comprehensive digital asset regulation, particularly for stablecoins, Patrick McHenry, Chair of the House Financial Services Committee. This update arrives a few months after PayPal extended its crypto purchase capabilities to Venmo users.
PayPal Introduces New Stablecoin Linked To USD
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
September 16,2024
Worldcoin Being Investigated By Singaporean Authorities For Potentially Violating Regulations
September 16,2024
Flappy Bird May Be Revived In Web3 Format Despite Original Creator Not Being Involved
September 16,2024
Web3 Fundraising Deals - 10th To 16th September, 2024
September 15,2024
BTC Finally Starts To Recover As Total Crypto Market Cap Up By $70 Billion
September 14,2024
Coinbase Wrapped BTC Reaches Impressive Milestone In Just 24 Hours
September 13,2024
United States SEC Admits Several Cryptocurrencies Are Not Securities
September 13,2024
OpenAI Releases New AI Model Series To Support Smart Contract And Blockchain Capabilities
September 12,2024
Inaugural Congressional Hearing About DeFi Takes Place
September 12,2024
Cardano Hits New Network Milestones As Hoskinson Debunks Faulty Staking Claims
September 11,2024
Nucoin Will Be Discontinued As Holders Given Option To Convert To BTC Or USDC
September 11,2024
PayPal And Venmo Will Integrate Ethereum Name Service For Crypto Transfers
September 10,2024