Paypal (NASDAQ: PYPL) sent shockwaves through the crypto landscape today with the announcement they will be launching their own stable coin, called PayPal USD.
Backed by the US dollar and US Treasuries, PayPal USD is the tech giant’s first foray into their own digital currency.
- PayPal USD will allow users to transfer the stable coin between users of PayPal and external wallets
- Users will also be able to send payments using PayPal USD and convert other cryptocurrencies into PayPal USD
- PayPal USD will first roll out on the PayPal app and then later on Venmo
- The token will be issued on the Ethereum blockchain
Why it matters:
- PayPal has been one of the first prominent technology companies to embrace crypto and now will be the first one to issue its own digital currency
- The launch of PayPal’s own digital currency is likely to spur other tech giants to more seriously consider how they can move into digital payments and the broader crypto ecosystem
- Since PayPal is a public company, the regulatory obstacles and transparency required to launch a stable coin will likely provide a first of its kind framework for other entrants to be able to build off of