PayPal Launches U.S. Dollar Stablecoin

PayPal has recently announced the postponement of the launch of a USD-based cryptocurrency trading service in the American and British markets, earlier confirmed as a stablecoin named “PayPal USD” (PYUSD). Transactions for this service will be conducted through the Paxos National Trust Bank system, which has received approval from the U.S. Currency Comptroller’s Office.

PayPal’s successful announcement of the USD-based cryptocurrency trading service may be related to the recent efforts of the U.S. House Financial Services Committee (FSC) to establish a federal regulatory body for stablecoins, thereby enabling clearer management of cryptocurrency transactions. Furthermore, the chairman of the Financial Services Committee, Patrick McHenry, believes that the launch of the “PayPal USD” service will contribute to the stable development of digital financial transactions through stablecoins in the coming era.

The “PayPal USD” service will gradually become available to PayPal users across the United States, though the decision to extend it to users outside U.S. borders remains unconfirmed at present.

PayPal has stated that the “PayPal USD” service is built upon the stable Ethereum ERC-20 token architecture and will be traded through the Paxos National Trust Bank system. This foundation allows for rapid integration into various developer-created applications, positioning it as a transaction system for future Web 3.0 development, and also enabling it to become a legally binding digital transaction currency tied to the U.S. dollar.

While PayPal’s official entry into the cryptocurrency market is perceived by many as likely to rejuvenate investor confidence in cryptocurrency, there remains an opinion cautioning that the market for cryptocurrency still harbors a high degree of uncertainty, thus deterring rash investments.