PayPal USD (PYUSD) has made its debut on Venmo, offering select users a regulated, dollar-denominated stablecoin that is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries and similar cash equivalents.
This move aims to provide a stable form of digital value that connects fiat dollars to the Web3 ecosystem, ultimately reducing friction in everyday payments while improving speed and lowering costs, PayPal said in a Wednesday (Sept. 20) press release.
While currently accessible only to select users, the stablecoin will be fully rolled out in the coming weeks, according to the press release.
Venmo users now have the ability to purchase PYUSD and send it to friends and family on PayPal, Venmo and compatible external wallets, the release said.
One notable aspect of this integration is the seamless interoperability between PayPal and Venmo wallets, per the release. This means that transfers between users on both platforms are fast and free, providing a convenient and cost-effective solution for millions of users.
Moreover, individuals using compatible external wallets and merchants accepting payments in PYUSD can also receive transfers from Venmo users, albeit with blockchain network fees, according to the press release.
Since its launch, PayPal USD has gained significant traction within the crypto community, the release said. It is already present on select exchanges such as Crypto.com, Bitstamp, Coinbase and Kraken, as well as wallets like MetaMask, Ledger and Phantom.
Additionally, custodians, institutional service providers and crypto payment service providers have embraced PYUSD, including names like Fireblocks, Copper, Paxos, Fordefi and Bitpay, per the release. The stablecoin has also garnered support from popular decentralized applications.
Furthermore, PayPal USD has been greenlisted by the New York State Department of Financial Services, according to the release. This regulatory approval makes it easier for virtual currency entities licensed in New York to support PYUSD, further expanding its reach and adoption.
PayPal launched the stablecoin on Aug. 7, saying PayPal USD is “designed to contribute to the opportunity stablecoins offer for payments.”
“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,” PayPal President and CEO Dan Schulman said when announcing the launch.