About PayPal USD (PYUSD)
PYUSD is PayPal's new stablecoin designed to maintain a 1:1 value ratio with the US dollar, ensuring that its monetary value remains consistent. By using USD as a reference point, PYUSD aims to provide a stable and secure medium for conducting transactions.
Incorporating blockchain technology, the vision behind PYUSD is increased security, transparency, and a highly efficient transaction method. As per the project, PayPal USD has been developed to enhance the potential of stablecoins in the payment sector and offers complete backing by U.S. dollar deposits, short-term U.S. Treasuries, as well as comparable cash equivalents. Users can redeem PayPal USD at a 1:1 ratio with U.S. dollars, while the Paxos Trust Company serves as the issuer of this stablecoin.
As a reputable financial service provider, PayPal's foray into stablecoins offers credibility. In fact, PYUSD is expected to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, in addition to adhering to all pertinent regulatory requirements.
As per the announcement, eligible U.S. PayPal customers purchasing PayPal USD can:
- Transfer PayPal USD between PayPal and compatible external wallets
- Conduct PYUSD-based person-to-person transactions
- Use PayPal USD for funding purchases at checkout2
- Convert between PayPal-supported cryptocurrencies and PayPal USD
PayPal USD (PYUSD) is not available for purchase or trade on Binance.
