PayPal Integrates Stablecoin-To-Fiat Feature to Facilitate Global Money Payments
The global payment firm PayPal revealed on April 4 that clients in the United States can utilize its stablecoin to finance global payments. Users can exchange PYUSD for dollars to make global payments through Xoom.
In a press release, the firm noted that clients can exchange PayPal USD (PYUSD) for $ dollars. Afterward, the money can be sent to ‘recipients in nearly 160 nations’ through the Xoom payment platform.
The PYUSD virtual token is currently running on Ethereum. Besides, it is a dollar-secured stablecoin supported by short-term treasuries and cash equivalents. It was unveiled in 2023 and was offered by Paxos Trust Co.
PayPal Projects Mainstream Crypto Adoption
Jose Fernandez da Ponte, PayPal’s vice president heading the cryptocurrency, blockchain, and digital currency group, claimed the strategy ‘establishes on their objective of promoting mainstream cryptocurrency adoption. He also said that they intended to attain two goals when they decided to unveil PYUSD.
The team aimed to develop a stable value to boost user confidence and ensure it has utility for payments and commerce. A stablecoin refers to a digital asset attached to something stable, in this case, the United States dollar.
The token’s value in stablecoin does not rise or fall as much as Ethereum or Bitcoin. In crypto, they are widely utilized by persons to leave transactions when they lack immediate access to fiat currencies held in a conventional bank. In turn, the trading experience is hastened.
PayPal Enters Stablecoin Market Led by Tether’s USDT
In 2023, PayPal unveiled the stablecoin, hoping it will be ‘a part of the overall payments infrastructure.’ It is smaller than the rest of the stablecoins, such as Tether’s USDT.
USDT is the most-traded digital asset and the third biggest cryptocurrency, and its market capitalization is $106B. By comparison, PYUSD has a market capitalization of $109M.
PayPal permits its users to purchase and sell cryptocurrencies on its network, including Ethereum and Bitcoin, and move them to outside wallets. Nonetheless, it is miles apart to challenge the second largest stablecoin USD Coin (USDC).
Editorial credit: AdriaVidal / Shutterstock.com
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