Fintech company, PayPal Holdings (NASDAQ: PYPL) announced today the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). This stablecoin will be backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents. This stablecoin will be redeemable in the ratio of 1:1 for U.S. dollars and is issued by Paxos Trust Company.
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The company added that PayPal customers in the U.S. who purchase the PayPal USD stablecoin will be able to transfer the stablecoin between PayPal and compatible external wallets, send person-to-person payments using the stablecoin, fund their purchases with PYUSD and convert any of PayPal’s supported cryptocurrencies to and from PYUSD.
Dan Schulman, President and CEO, PayPal commented, “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. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Analysts are cautiously optimistic about PYPL stock with a Moderate Buy consensus rating based on 20 Buys and 13 Holds.
