In a significant expansion of its cryptocurrency offerings, PayPal, a major U.S.-based payment processor, has announced the integration of its PYUSD stablecoin with Venmo, a popular mobile payment platform.
The company shared this exciting news through a blog post on September 20th, revealing that its PayPal USD (PYUSD), a stablecoin pegged to the U.S. dollar, is already accessible to Venmo users and will be fully rolled out in the coming weeks. This development comes just six weeks after PayPal initially introduced the stablecoin, disclosing that it would be issued by Paxos Trust and backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
According to PayPal, PYUSD is already making its presence felt in native crypto experiences, and its availability is expanding as the ecosystem develops further. Since its initial launch, the stablecoin has gained quick traction and has already been listed on prominent exchanges including Crypto.com, Bitstamp, oinbase">Coinbase, and Kraken.
Blockchain analytics firm Nansen reported that as of August, approximately 90% of PYUSD is held in wallets controlled by Paxos Trust. This high concentration of PYUSD underlines the significant trust and confidence placed in the stablecoin’s stability and reliability. Furthermore, crypto firm BitPay recently revealed its decision to support PYUSD, recognizing the payment utility and the active participation of the community.
PayPal has been actively broadening its presence in the cryptocurrency space and has achieved notable progress this year. In 2021, the company began accepting digital asset payments and has been actively working towards establishing on- and off-ramps for Web3 payments, set to launch in 2023. The New York State Department of Financial Services has even included PYUSD on its green list, approving the stablecoin for regulated use.
This latest move by PayPal further highlights the growing adoption and recognition of stablecoins in the financial industry. As digital payments and cryptocurrencies continue to gain momentum, the integration of PYUSD with Venmo presents new opportunities for users to engage in secure and seamless transactions using stablecoins. With PayPal’s ongoing efforts to expand its crypto offerings, it will be intriguing to observe how this development influences the mainstream adoption of stablecoins and propels the overall advancement of the cryptocurrency market.
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