PayPal is taking a serious foray into the crypto-currency world with the introduction of its first stablecoin pegged to the US dollar, called PayPal USD (PYUSD) – aiming to capitalize on the new shift to digital currency payments. Dan Schulman, President and CEO of PayPal, stated that the move is to “contribute to the growth of digital payments through PayPal USD,” citing a customer base that needs a fast, reliable way of transferring funds between different Fiat and Web3 sources.
In order to make feasible person-to-person payments with PYUSD as well as purchase funds, the US Dollar will be backed by the new coin not only with US dollar deposits but with US Treasurys too, PayPal further revealed. Stablecoins are thought of as a digital asset that is secured to an asset with a more stable value like USD which prevents a lot of the problems that can beset the crypto-currency market with rapid changes in prices.
The news of PayPal’s first crypto-coin has prompted the payment brand’s shares to rise 2% in premarket trading following the official announcement. By rolling out a product like this, coupled with last year’s acquisition of FTX, the confidence amongst the crypto-currency sector on a whole has also been buoyed.
