PayPal has the launch announced of their new U.S. dollar-stablecoin called PayPal USD (PYUSD). This stable crypto currency is designed to play an important role in web3 and digital environments and offers full support for payments.

PayPal USD is fully backed by U.S. dollar deposits, short-term U.S. Treasury bills and similar cash equivalents, making it a reliable and stable option for users. For each unit of PayPal USD there is a 1-to-1 redeemability for U.S. dollars.

Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023

PayPal builds bridge between fiat currency and Web3

As a regulated stablecoin PayPal USD has the potential to transform payments and boost the use of digital currency. Paxos Trust Company is responsible for issuing this stablecoin, and PayPal customers in the United States can already perform tansactions with PYUSD today.

PayPal USD bridges the gap between fiat and Web3 for consumers, merchants and developers, making it possible to easily connect fiat currency and digital currency. The token is based on the Ethereum blockchain and leverages PayPal's experience in large-scale payments, combined with the speed and programmability of blockchain protocols.

The launch of PayPal USD will provide a smoother payment experience within virtual environments, enable quick value transfers between friends and family, and facilitate international payments. Developers and creators will benefit from direct flows, and the PayPal USD ecosystem will promote the adoption of digital assets by major brands. In addition, the PayPal USD ecosystem will work seamlessly with Web3-specific environments and will soon be available on Venmo.

Transparency and security of PayPal USD

The transparency and security of PayPal USD are guaranteed because Paxos Trust Company holds the reserves of the stablecoin will report publicly on a monthly basis. This report will provide insight into the underlying instruments that make up PayPal USD's reserves. In addition, an independent third party will publish a statement to confirm the value of these reserves in accordance with American Institute of Certified Public Accountants (AICPA) standards.

With the introduction of PayPal USD, PayPal continues to focus not only on developing innovative products and services, but also on the further adoption of digital currency.