Paypal is launching their own stablecoin for payments and transfers known as PYUSD (PayPal USD). It is issued by Paxos Trust Company and backed by U.S. short term U.S. Treasuries, dollar deposits and like cash equivalents. This is among the first moves from one of the biggest financial institution.

Relief for PayPal Users

Individuals who are eligible to buy PYUSD have the ability to transfer PYUSD between PayPal and different media. This includes compatible external wallets and one person to another using PYUSD as payments.
Additionally, fund purchases can be made by selecting it at a checkout and changing it to any of the cryptocurrencies that are supported by PayPal.

PYUSD

PayPal has indicated that they will let you know the exchange rate when you buy or sell it. the exchange rate and fees will be charged for the transaction.

What is a Stablecoin?

A Stablecoin is a cryptocurrency whose value is attached to an external asset like the USD.
The move by PayPal is designed to make it easier for the user in this current market that is opening up to cryptocurrencies. This will allow fast transfers of value to help family and friends, send payments and allow international payments. Developers and creators will have direct flow of capital.

Monthly Publications

PayPal has indicated that monthly reports by Paxos will be published to detail the assets backing PYUSD. Paxos will also be responsible for publishing a public third-party attestation of the value of the PYUSD reserve assets.
Paypal’s Inconsistency
The company has in the recent past been at loggerheads with various users and has seen it’s market share dwindle in the last few years. This move will try and open more avenues to its users.

PayPal first began introducing crypto services back in 2020 when it started introducing it’s users in the US to buy and hold cryptocurrencies.