PayPal Introduces US Dollar-Backed Stablecoin

PayPal is introducing a new stablecoin, which is backed by the US dollar. The stablecoin, issued by Paxos Trust Co, was outlined in a statement released by PayPal on Monday. Customers who acquire PayPal USD will have the ability to transfer the stablecoin between compatible external wallets as well as within PayPal. They will also be able to use PayPal USD to make purchases. The stablecoin will be accessible from Monday, and customers will be able to purchase, send, convert, and use the stablecoin for purchases in the coming weeks. This announcement marks the first instance of a major US financial company launching a stablecoin. PayPal had previously acknowledged the existence of this project early in 2022. Since early 2021, PayPal has been integrating cryptocurrency services, enabling users to buy, sell, and hold prominent digital assets like bitcoin and ether.