Paypal USD serves as a bridge between the traditional fiat currency and web3 ecosystem and has quickly reached a market capitalization of $44.3 million
The US based financial payments giant PayPal has rolled out Paypal USD (PYUSD), which is available to users on Venmo, a peer-to-peer payments platform owned by PayPal. This comes nearly a month after their announcement to launch a stablecoin.
PYUSD is issued by the Paxos Trust Company and is fully backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents. The users can exchange their PYUSD for US dollars or vice versa at a fixed rate of 1:1. This ensures that PYUSD maintains a stable value similar to the US dollar.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash