[NEWS] PayPal launches US dollar stablecoin "PYUSD"

On the 7th, PayPal, a major US payment company, announced the US dollar-linked stablecoin "PayPal USD (PYUSD)".

PPYUSD is 100% backed by US dollar deposits, US short-term government securities, and cash equivalents, and is pegged 1:1 to the US dollar.

Paxos Trust Company will issue the coin. PPYUSD will be subject to regulatory oversight by the New York State Department of Financial Services (NYDFS).

According to the announcement, PYUSD will be sold to US PayPal users in stages. Users who purchase PYUSD can do the following:

• Send and receive PYUSD between PayPal-compatible external wallets.
• Make person-to-person payments using PYUSD.
• Select and purchase PYUSD.
• Convert PayPal-supported crypto assets to PYUSD and convert PYUSD to crypto assets.

PayPal CEO Dan Schulman said, "The transition to digital currency is digitally native and requires a stable means that can be easily connected to fiat currencies like the US dollar," and continued, "Through PYUSD, we will provide the foundation necessary to contribute to the growth of digital payments."

PYUSD is an ERC-20 stablecoin issued on the Ethereum blockchain. It is designed to combine the speed, cost, and programmability advantages of blockchain protocols, based on decades of experience in large-scale payments at PayPal.

It can also be used by developers in external communities, various wallets, and Web 3.0 applications. Therefore, it is easy to adopt at cryptocurrency exchanges, and it will be deployed to enhance the experience within the PayPal ecosystem.

PYUSD will soon be available on Venmo, a mobile payment service under PayPal.

Paxos, which is in charge of issuing the PYUSD, will publish monthly reserve reports for PYUSD starting in September of this year. Additionally, a certificate regarding PYUSD's reserve assets will be issued by an independent third-party accounting firm in accordance with the certification standards set by the American Institute of Certified Public Accountants (AICPA).

Source: Announcement
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