PayPal opens cross-border money transfer service by swapping USD with stablecoin PYUSD

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Multinational payments will be processed through PayPal's Xoom subsidiary via a PYUSD-to-fiat stablecoin swap protocol

According to an April 4 announcement , the service, powered by PayPal's Xoom, powers PYUSD transfers to more than 160 countries with no transaction fees.

PayPal will allow all US users outside the state of Hawaii to transfer USD to another fiat currency to relatives or friends abroad by swapping the PayPal USD (PYUSD) stablecoin.

“By introducing the option to transfer cross-border funds in USD converted from PYUSD, Xoom provides an easy and reliable solution for US users to send money abroad using PYUSD as a funding source. support". “When this option is selected, Xoom will convert the US user's PayPal Cryptocurrency Hub PYUSD to USD without crypto selling fees, and the recipient will receive the funds in the sender's fiat currency select."

Through the service, money can be sent abroad to a bank account, mobile wallet address or financial institution for pickup. Transactions not denominated in USD will be subject to currency conversion, including price differences. All US users can use the service except Hawaii, where holding cryptocurrency with PayPal is prohibited by law.

The issuance and custody of PayPal USD is carried out by Paxos Trust Company in New York. Since its launch last August, nearly $200 million in PYUSD has been issued , a figure much lower than USDC market Capital of $32.9 billion and Tether's USDT of $110 billion. Jose Fernandez da Ponte, senior vice president of PayPal's Digital Currency Group, said the company's goal around PYUSD is to create a cryptocurrency with a stable value that maximizes user trust and ensures Make sure it has utility for commerce and payments.

On the same day, Ripple announced it would launch a US dollar-backed stablecoin, joining the competition in the $150 billion stablecoin market. Similarly, on April 3, Nick van Eck, son of investment manager Jan van Eck, is set to launch a new US dollar-backed stablecoin following the close of a funding round. price 12 million USD .

VIC Crypto compiled

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