PayPal Launches a Stablecoin in Latest #Crypto Payments Push

PayPal USD (PYUSD) is issued by Paxos Trust Co. and fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents.

PYUSD is designed to be redeemable for dollars at all times and can also be exchanged for other cryptocurrencies available on PayPal’s network. It can be used to fund purchases and will soon be available on PayPal’s popular payments app Venmo. Users will eventually be able to send their token holdings between a PayPal and a Venmo wallet.

The coin can also be moved to compatible third-party wallets outside the PayPal network.

PYUSD will be a regulated product in the state of New York.

Starting in September, Paxos will publish monthly reports detailing the assets backing PYUSD, PayPal said. Paxos will also publish a third-party attestation by an accounting firm on PYUSD’s reserve assets.