Originally published on: November 19, 2024
PayPal’s groundbreaking move with its stablecoin, PYUSD, is revolutionizing cross-border payments. By introducing PYUSD at $0.9991, the payment giant aims to unlock new opportunities in the Asian and African markets while enabling transactions beyond traditional banking hours.
Xoom, a subsidiary of PayPal, has partnered with Cebuana Lhuillier and Yellow Card to streamline PYUSD disbursements. Chris Maurice, CEO of Yellow Card, emphasized the transformative impact of stablecoins like PYUSD, stating, “They will be able to move money in the most effective way possible thanks to our stablecoin and payments infrastructure.”
PYUSD, backed 1:1 by US dollars and issued by Paxos Trust Company, competes with other dollar-backed stablecoins like USD Coin (USDC) at $0.9994. As an Ethereum-compatible ERC-20 token, PYUSD stands out as the sole stablecoin integrated into PayPal’s payment ecosystem, facilitating seamless transactions and enhancing accessibility for developers, wallets, and Web3 applications.
PayPal’s initiatives, including collaboration with Anchorage Digital and partnerships with leading platforms like Crypto.com and Web3 infrastructure provider MoonPay, underscore a commitment to expanding the utility and reach of PYUSD. The rewards program launched in conjunction with Anchorage Digital offers a compelling incentive for clients to hold PayPal USD stablecoins with the crypto custodian.
While PYUSD continues to gain traction, it faces strong competition from market leaders like USDT and USDC, which boast market capitalizations of $128 billion and $37 billion, respectively. However, PayPal’s strategic partnerships and innovative approaches position PYUSD for continued growth and adoption in the evolving digital payments landscape.
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