American company PayPal has introduced a new cryptocurrency stablecoin called PayPal USD.
The new stablecoin will be issued by Paxos Trust Co. and will be fully backed by deposits in US dollars, short-term US Treasury securities, and other cash equivalents.
The company announced that American clients would soon be able to purchase the new stablecoin.
PYUSD will always be convertible into dollars and exchangeable on PayPal for other cryptocurrencies.
According to the payment processor, the new stablecoin will be accepted as payment for a range of purchases soon and will be transferrable between Venmo and PayPal.
The introduction of a stablecoin may advance the company’s effort to establish itself as the industry leader in cryptocurrency payments, a goal it set for itself in 2020 after enabling cryptocurrency payments on its platform.
Dan Schulman, the CEO of PayPal, anticipates that the new stablecoin will be integrated into the wider payments system.
