The PayPal stablecoin could be a watershed moment for the crypto industry, with a global fintech leading the way for crypto adoption through its product.
In what could be a turning point for crypto, global fintech player PayPal has released a stablecoin. Paxos Trust Company will issue the PayPal stablecoin. The dollar-backed stablecoin, called Paypal USD (PYUSD), could heavily endorse crypto adoption, considering the popularity of PayPal.
The crypto initiative is familiar to PayPal, though. It has undertaken several exercises in this direction earlier. In the press release announcing the stablecoin, the fintech company also expressed its focus on the potential of stablecoins.
The dollar-backed stablecoin will also have short-term US treasuries and other cash equivalents as its underlying assets. It could be exchanged for other crypto tokens and the USD in PayPal. The PYUSD will also be available on Venmo soon. The fintech major will utilize the Ethereum blockchain to issue the stablecoin.
President and CEO of PayPal, Dan Schulman, was highly optimistic about the product. He claimed PayPal would provide the necessary foundation for its growth through its track record. He mentioned PayPal’s commitment to compliance and responsible innovation.
Charles Cascarilla, CEO of Paxos, said, “With the launch of the first stablecoin by a leading financial institution, PayPal and Paxos are proving the real-world value of blockchain technology. PayPal USD is the most significant leap forward for digital assets and the financial industry, and Paxos is proud to enable this transformative product.”
PayPal’s sheer scale of operations, and its behemoth reach, could be a positive influence for stablecoins. Other fintech firms could follow in PayPal’s footsteps as soon as crypto adoption steps deeper.