PayPal Launches PYUSD Stablecoin
PYUSD on app

PayPal Launches PYUSD Stablecoin

PayPal is expanding its digital payments network with the introduction of a new stablecoin.

About PYUSD:

This week, PayPal announced the launch of a United States dollar-backed stablecoin called PayPal USD — or PYUSD. These coins will be redeemable at a 1:1 ratio for U.S. dollars and will be issued by Paxos Trust Company. In the coming weeks, customers will be able to transfer PYUSD between PayPal and compatible external wallets, send the stablecoin as P2P payments, use PayPal USD at PayPal Checkout, and convert PYUSD to or from other cryptocurrencies supported by the platform. PYUSD will also soon be available for Venmo.

PayPal notes that reserves for their coin will be fully backed by U.S. dollar deposits, U.S. Treasuries, and other cash equivalents. Furthermore, beginning in September, Paxos will publish a PYUSD reserve report on a monthly basis. This report will outline the composition of PayPal’s reserves and will provide a third-party attestation of the value.

What they’re saying:

Discussing the debut of PYUSD, PayPal’s president and CEO Dan Schulman stated, “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.” 

Elsewhere, in their press release, PayPal stated, “As the only stablecoin supported within the PayPal network, PayPal USD leverages PayPal’s decades-long experience in payments at scale, combined with the speed, cost and programmability of blockchain protocols. As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be available to an already large and growing community of external developers, wallets and web3 applications, can be easily adopted by exchanges, and will be deployed to power experiences within the PayPal ecosystem.”  

My thoughts:

In many ways, PayPal offering its own stablecoin makes a lot of sense. Given the fact that the company remains a force in digital payments, the introduction a PYUSD allows them to stay up to date on new technology while also keeping consumers safe. On that note, just as they previously did by offering other cryptocurrencies, PayPal’s expansion into stablecoins will help further legitimize crypto at a time when regulatory scrutiny is growing. Ultimately, it will be interesting to see how PSUSD is embraced and utilized going forward and what will be next for digital payments at PayPal and beyond.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

One Key credit cards and a woman on a boat

Wells Fargo Offering Enhanced Bonuses for One Key Cards

Wells Fargo has unveiled limited-time welcome offers for both of its One Key co-branded credit cards. About the bonuses: Those who have had their eyes on One Key's rewards credit card options may want to take advantage of the increased bonuses that are available now. Currently, new One Key cardholders can earn $400 in OneKeyCash after spending $1,000 in purchases on the card within their first three months. Meanwhile, those...
American Express Member Week March 17-21

American Express Announces March Member Week Celebration

In celebration of its 175th anniversary, American Express has announced that it will be hosting Member Week next month. About Amex Members Week: Amex is bringing back Members Week for 2025 — this time launching the affair in March as opposed to the traditional fall timeframe. This latest event also marks the first time the company has celebrated it since the 2023 edition. 2025's American Express Member Week will be...
Gasbuddy+ Mastercard

GasBuddy Introduces Pay with GasBuddy+ MasterCard Debit Card

The popular app GasBuddy is rolling out a new and improved version of its gas rewards debit card. About Pay with GasBuddy+: GasBuddy has announced the launch of the Pay with GasBuddy+ card. This debit card builds upon the previous Pay with GasBuddy card with some new features. Most notably, in contrast to the original card which could only be used at gas stations, the new product allows for purchases...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox
Travelers with two Best Western Credit Cards

Best Western Debuts Two New Rewards Credit Cards

After pausing applications for their previous rewards card, the hotel chain Best Western has unveiled a new pair of rewards credit cards with a new issuer. About the Best Western cards: Best Western is partnering with First Bank & Trust and Mercury Financial to introduce two new co-branded credit cards. First up is the no-annual-fee Best Western Rewards Visa Signature Card. With this card, customers can 4x points on Best...
Marriott Bonvoy card and a woman on vacation

Marriott Bonvoy Bold Card Launches Travel Contest

Chase and Marriott Bonoy have unveiled a special contest while continuing to offer its best-ever welcome bonus. About the welcome bonus and Bold Chat Court Contest: Marriott Bonvoy and Chase have launched a special opportunity called the Bold Chat Court contest. As part of this contest, 10 lucky travelers will be awarded 500,000 Marriott Bonvoy points (for a total of 5 million) as well as $5,000. For this contest, the...
Bilt and All Reward logos

Bilt Adds 2 New Transfer Partners Including First 3:2 Transfer Rate

Bilt is once again expanding its travel transfer rewards program — and is even breaking the mold with one new partner. About the new additions to Bilt: This week, Bilt launched partnerships with two more travel brands: TAP Air Portugal and Accor. As a result, Bilt members will now be able to transfer their points to Miles&Go and ALL Reward, respectively. In total, Bilt now has 18 transfer partners including 13...
Fioney Top 10 Must-Read Personal Finance Articles Septemeber 2024

Top 10 Personal Finance Articles of the Month — September 2024

Welcome to Fioney's look at the top 10 personal finance articles of the month. On the first Friday of each new month, we look back at some of our favorite posts published in the weeks prior and highlight them right here. This includes a mix of sites that have become staples of our lists as well as many first-timers. To start things off this month, we'll look at some articles...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...