PayPal USD is intended to contribute to the payment opportunities offered by stablecoins and is supported 100 percent by U.S. dollar deposits, short-term U.S. Treasuries, and other cash equivalents. PayPal USD is issued by Paxos Trust Company and is redeemable at par for U.S. dollars.
From now on and the coming weeks, eligible PayPal customers in the United States who purchase PayPal USD will be able to:
- Transfer PayPal USD between PayPal and external wallets that support the currency.
- Send person-to-person payments using PYUSD
- Fund purchase using PayPal USD
- Convert any of the cryptocurrencies supported by PayPal to and from PayPal USD.
Constructing the Bridge Between Fiat and Web3
Customers, businesses, and developers will be able to connect fiat and digital currencies without any difficulty thanks to PayPal USD. PayPal USD, the only stablecoin supported by the PayPal network, combines the decades of experience PayPal has in large-scale payments with the quickness, affordability, and programmability of blockchain protocols. PayPal USD will be used by a substantial and growing community of outside developers, wallets, and web3 applications as an ERC-20 token issued on the Ethereum blockchain. Exchanges will also readily accept PayPal USD and use it to power experiences inside the PayPal ecosystem.
With PayPal USD, there should be less friction for novice users to make payments in virtual environments, it should be quicker to send money to friends and family, send remittances, or make international payments, it should be possible to send money directly to developers and creators, and it should encourage the biggest brands to keep investing in digital assets.
US Dollar Denominated
The Paxos, a fully licensed trust corporation under the regulatory control of the New York State Department of Financial Services, issues PayPal USD.
The NYDFS issued PayPal a BitLicense in June 2022, having previously issued a conditional BitLicense.
Reserves for PayPal USD are entirely supported by U.S. dollar deposits, U.S. Treasuries, and other cash equivalents, and PayPal USD can be purchased or sold for $1.00 per PayPal USD.
Starting in September 2023, Paxos will release a monthly Reserve Report for PayPal USD that details the instruments that comprise the reserves. Paxos will also publish a third-party public certification of the value of PayPal USD reserve assets.
Focusing on Digital Currency Education, Understanding, and Adoption
PayPal focuses on enhancing consumer and merchant understanding of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs), while collaborating closely with regulators as the industry evolves. In addition to PayPal USD to U.S. account holders, PayPal currently provides customers with the ability to buy, hold, sell, and transfer select cryptocurrencies, as well as educational content to help account holders comprehend the risks and opportunities associated with the technology.