PayPal, a payment giant based in San Jose, California, has announced the launch of its own stablecoin, PYUSD, in partnership with Paxos Trust Co. This digital currency is backed by deposits denominated in US dollars, along with short-term Treasuries and comparable cash equivalents, to ensure a secure and reliable peg to the US dollar. The gradual rollout of PYUSD will provide PayPal’s US-based customers with a new digital asset option.This marks a major milestone as the first major corporation to launch its own stablecoin. Although stablecoins are traditionally used for inter-exchange transfers of digital assets and rarely as a means of consumer payments, PayPal’s strategic approach may be to entice consumer assets away from cryptocurrency exchanges and channel them into the PayPal network.Jose Fernandez da Ponte, head of PayPal’s blockchain and digital currencies division, believes that the regulatory landscape is shifting towards increased clarity and that there is a growing demand for an alternative stablecoin due to the current market’s concentration.Someone on Twitter has raised questions about the situation, noting that Paxos was ordered to cease the issuance of $BUSD due to concerns about its ability to securely create the token in February of 2023, and now PayPal is launching its own stablecoin, $PYUSD, with Paxos as the issuer.
| Information |
Details |
| Geography |
North America |
| Countries |
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| Sentiment |
negative |
| Relevance Score |
9 |
| People |
Jose Fernandez da Ponte, Kyle Chassé |
| Companies |
PayPal, Paxos Trust Co, Bloomberg, Twitter |
| Currencies |
B,U,S,D |
| Securities |
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