Paypal Launches its Own Stablecoin on the Ethereum Chain
PayPal debuts its own dollar-backed digital currency, a big leap in the world of digital finance.
PayPal is launching its own stablecoin. This coin, supported by the US dollar, is made by Paxos Trust Co.
Users who buy PayPal USD can transfer it to compatible wallets and use it for purchases on PayPal. The stablecoin is available from Monday, and customers will be able to buy, send, and use it for purchases in the coming weeks.
This is the first time a major US financial firm has made a stablecoin. PayPal started to include crypto services in early 2021, letting users buy, sell, and hold big digital currencies like bitcoin and ether.
PayPal’s CEO, Dan Schulman, said that the move towards digital currencies needs a stable tool that can easily connect to real money like the US dollar.
Paxos will publish a monthly report on the stablecoin and confirm the value of the PayPal USD reserve assets. The stablecoin will be fully backed by US dollar deposits and similar cash equivalents.
The CEO of Paxos, Charles Cascarilla, said that PayPal USD is a big step forward for digital assets and finance.
The stablecoin, PayPal USD, will be a digital asset based on blockchain and issued on Ethereum as an ERC-20 token.
The launch of this stablecoin comes after PayPal allowed Venmo users to buy cryptocurrencies a few months ago.
