PayPal launches dollar-pegged stablecoin
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Pushing further into the digital curency sphere, PayPal Holdings (NASDAQ:PYPL) launched a U.S. dollar-denominated stablecoin, PayPal USD (PY-USD), digital currency backed by U.S. dollar deposits, short-term U.S. Treasurys, and similar cash equivalents.
The new stablecoin is redeemable one-for-one for U.S. dollars and is issued by Paxos Trust Company. Eligible PayPal (PYPL) customers who purchase PayPal USD will be able to transfer PayPal USD between PayPal and compatible external wallets, send person-to-person payments using PYDUSD, fund purchases with PayPal USD by selecting it at checkout, and convert any of PayPal's supported cryptocurrencies to and from PayPal USD, the company said.

"The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar," said PayPal (PYPL) President and CEO Dan Schulman.
Starting in September 2023, Paxos will publish a public monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves. It will also publish a public third-party attestation of the value of PayPal USD reserve assets.
PayPal (PYPL) stock gained 0.7% in Monday premarket trading.


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