PayPal’s US dollar-pegged stablecoin, PayPal USD (PYUSD), has surpassed $1 billion in market capitalization, as reported by CoinMarketCap. Launched in 2023 and backed 1:1 by US dollars, PYUSD is issued by Paxos Trust Company, a US-regulated crypto custodian. It competes with other regulated, dollar-backed stablecoins like Circle’s USD Coin (USDC).
Dan Schulman, PayPal’s president and CEO, emphasized the importance of a stable digital currency that is both digitally native and easily connected to fiat currency like the US dollar. PYUSD, an Ethereum – compatible ERC-20 token, is the only stablecoin supported on PayPal’s payment platform. It is designed to be accessible to developers, wallets, Web3 applications, and cryptocurrency exchanges.
To increase PYUSD’s accessibility, PayPal has partnered with Anchorage Digital to offer a rewards program for clients who hold PYUSD with the crypto custodian. In May, PayPal launched PYUSD on Solana, collaborating with Crypto.com, Phantom, and Paxos to onboard users onto the blockchain network. Additionally, PayPal partnered with Web3 infrastructure provider MoonPay to enable cryptocurrency purchases using PayPal accounts, and extended this partnership to include on-ramping users to the crypto betting platform Polymarket in July.
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Although PYUSD has achieved significant milestones, it still trails behind leading stablecoins Tether (USDT) and USDC, which have market capitalizations of nearly $118 billion and $35 billion, respectively.
Cre: cointelegraph
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