PayPal launches dollar, treasuries-backed stablecoin PYUSD for its customers

livemint.com:

US-based payments major PayPal on Monday announced the launch of a new stablecoin, PayPal USD (PYUSD) which is backed by dollar deposits, US treasuries, and cash equivalents. It will be issued by Paxos Trust Co to PayPal customers in the United States.

"It’s a stablecoin backed by secure and highly liquid assets. As PYUSD rolls out, you’ll be able to buy, sell, hold, and transfer it in our app or on our site," PayPal said.

PayPal's new stablecoin can be easily converted to US dollars whenever needed and can also be used to purchase and sell other cryptocurrencies available on its platform, such as bitcoin.

A stablecoin is a type of cryptocurrency that is designed to have a stable value, typically pegged to a stable asset or reserve, such as a fiat currency like the US dollar or a commodity like gold.

Media reports pointed out that PayPal has emerged as a trailblazer among major financial technology firms by embracing digital currencies for payments and transfers.

"While stablecoins have been around for years now, they are yet to successfully make headway into the mainstream consumer payments ecosystem. Instead, consumers mostly use stablecoins as a means to trade other cryptocurrencies, like bitcoin and ether. The world's largest stablecoin is Tether, followed by USD Coin, which is issued by crypto provider Circle," a Reuters report said.

The Reuters report pointed out that major mainstream companies' previous attempts to launch stablecoins faced strong opposition from financial regulators and policymakers. For instance, Meta (formerly known as Facebook) faced regulatory concerns in 2019 when it planned to launch a stablecoin called Libra, with fears that it could disrupt global financial stability.

Several major