• PayPal is launching a new stablecoin, PYUSD, which will be available on decentralized finance (DeFi) platforms in the future.
• Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto and digital currencies, said that it will be available on crypto exchanges and compatible with DeFi ecosystems.
• The stablecoin PYUSD is an ERC-20 token issued out of New York and is fully backed and in compliance with New York regulations.
PayPal Launches Stablecoin
PayPal has announced the launch of its new stablecoin, called PYUSD. This digital currency aims to provide users with a secure payment option that is free from volatility. It was developed in partnership with Paxos to ensure full compliance with New York regulations.
PYUSD Will Be Available on DeFi Platforms
According to Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto and digital currencies, PYUSD will eventually be made available on decentralized finance (DeFI) platforms sometime in the future. He said that the firm intends for it to be available on crypto exchanges and compatible with DeFI ecosystems.
PYUSD Is An ERC-20 Token
Da Pontes also noted that PYUSD is already compatible with Ethereum (ETH) wallets as it is technically an ERC-20 token and that it is fully backed and in compliance with New York regulations. As such, users can transfer this digital currency outside of their PayPal wallet to other ETH wallets without any issues.
Fully Backed By Regulations
Paxos has issued the token out of New York state and has approval from the Department of Financial Security (DFS). To ensure full compliance with KYC/AML provisions, Paxos has put strict controls in place when issuing the tokens.
Conclusion
PayPal’s launch of its own stablecoin provides users a secure payment option while meeting all regulatory requirements necessary for issuance. The firm intends for it to become widely used across cryptocurrency exchanges as well as DeFi platforms in the near future.