Paypal officially launched its own cryptocurrency
The electronic platform announced the launch of its digital asset, called Paypal USD
Payments company PayPal announced the launch of PayPal USD (PYUSD), a stablecoin denominated in US dollars and backed 100 % by US dollar deposits, short-term US Treasury bonds and similar cash equivalents.
According to the payment services firm, PayPal USD is redeemable 1:1 for US dollars and will be issued by Paxos Trust Company.
Starting at launch, eligible PayPal customers in the US who purchase PayPal USD will be able to transfer this cryptocurrency between PayPal and supported third-party wallets, send person-to-person payments using PYUSD, finance purchases with PayPal USD, and convert any of the PayPal-supported cryptocurrencies to and from PayPal USD.
“The shift to digital currencies requires a stable instrument that is digitally native and easily connects to a fiat currency like the US dollar”, said Dan Schulman, the company’s president and CEO.
Starting in September 2023, Paxos will publish a public monthly reserve report on PayPal USD indicating the instruments that make up the reserves, as well as a public third-party certification of the value of reserve assets in PayPal USD.
K. Tovar
Source: America Economia
(Reference image source: Marques Thomas, Unsplash)
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