PayPal's US dollar- Peg stablecoin, PayPal USD, has surpassed $1 billion in total market Capital , according to data from CoinMarketCap.
Launched in 2023, PayPal USD is backed 1:1 by the US dollar and issued by Paxos Trust Company, a regulated cryptocurrency custodian in the US. The coin competes with other regulated USD-backed stablecoins such as Circle Internet Financial's USD Coin (USDC ).
“The shift to digital currencies requires a stable instrument that is both digital in nature and easily connected to fiat currencies like the US dollar,” said Dan Schulman, PayPal’s chairman and CEO, in a statement in 2023.
An Ethereum-compatible ERC-20 Token , PYUSD is the only stablecoin supported on PayPal payments. According to PayPal, it is designed to be “available to an Capital large and growing community of external Web3 developers, wallets, and applications” and to be easily accepted by cryptocurrency exchanges.
PayPal has been taking steps to expand the reach of PYUSD, including partnering with Anchorage Digital to launch a rewards program for customers who custody the PayPal USD stablecoin with the crypto custodian.
In May, PayPal launched PYUSD on Solana, partnering with Crypto.com, Phantom, and Paxos to bring users onto the blockchain network.
The company also partnered with Web3 infrastructure provider MoonPay to enable cryptocurrency purchases using PayPal accounts. That partnership expanded to onboarding users to the Polymarket crypto betting platform in July.
Coinbase — which also has an institutional custody arm — encourages users to hold stablecoins on its platform. Currently, Coinbase offers an annual percentage yield of about 5.2% on USDC. Coinbase owns a stake in Circle.
Despite its recent success, PYUSD still lags far behind USD- Peg stablecoins USDT and USDC. According to data from CoinMarketCap, the top two stablecoins have market Capital of nearly $118 billion and $35 billion, respectively.
FOLLOW US ON FACEBOOK | TELEGRAM | TWITTER
Disclaimer: All content on this website is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decisions. We are not responsible, directly or indirectly, for any damages or losses arising in connection with the use of or reliance on any content you read on this website.
