PayPal has announced the launch of a new stablecoin, PayPal USD (PYUSD), designed for transfers and payments. This stablecoin is issued by Paxos Trust Co. and is backed by a reserve of US dollars, short-term government securities, and cash equivalents.
PYUSD will gradually become available to PayPal customers in the United States. Starting today and over the coming weeks, eligible US PayPal customers will be able to transfer PYUSD between their PayPal account and compatible external wallets, use PYUSD for peer-to-peer payments, select PYUSD for checkout, and exchange any supported cryptocurrency within PayPal for PYUSD.
Beginning in September 2023, Paxos will release monthly public reserve reports for PYUSD, outlining the specific composition of its reserve. Paxos will also provide third-party attestation of the value of the PYUSD reserve assets. This attestation will be provided by an independent third-party accounting firm and will adhere to the audit standards set forth by the American Institute of Certified Public Accountants (AICPA).
PayPal states that PayPal USD is the exclusive stablecoin supported within the PayPal network. As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be made available to the already extensive and continually growing community of external developers, wallets, and Web3 application users. It will seamlessly integrate into exchanges and will be deployed to enhance the experience within the PayPal ecosystem. While the majority of current stablecoins are primarily utilized within Web3-specific environments, PayPal USD will be compatible with this ecosystem from day one and will soon be accessible on Venmo as well.
PayPal has announced the contract address for its issued stablecoin PayPal USD (PYUSD). On-chain data reveals that a total of 26.9 million PYUSD tokens have been issued, held by 175 addresses. The contract address is 0x6c3ea9036406852006290770BEdFcAbA0e23A0e8.