Yesterday, Paypal, a giant in the electronic payment industry in the US, officially announced its participation in the Stablecoin sector of the Crypto market with Paypal USD – $PYUSD.
So, what exactly is $PYUSD? And what does it mean for the market?
What is Paypal USD?
$PYUSD is an ERC-20 stablecoin that runs on the Ethereum network.
$PYUSD is issued through a partnership between Paypal and Paxos. Paxos is the issuer of BUSD, Binance’s stablecoin.
According to Paypal, $PYUSD is always 1:1 against the USD, backed by US dollars, US Treasury bonds, and other cash equivalents.
According to Paypal Stablecoin Dashboard of TK Research on Dune, $PYUSD is now having its market cap at $26.9M.
Currently, users can have the following actions for PYUSD.
- Buy and Sell.
However, currently $PYUSD can only be transacted via Paypal’s official website or app.
Users can only use the $PYUSD conversion feature to cryptocurrencies supported by Paypal. Currently, Paypal supports 4 cryptocurrencies: $BTC, $BCH, $ETH, $LTC.
Similar to owning other payment cards on the market, $PYUSD can also be used to make electronic payments at online stores that support Paypal.
- Send and Receive PYUSD
Since PYUSD is an ERC-20 stablecoin, users can send and receive PYUSD to/from any other Ethereum wallet.
Comment on Paypal Participation
With the use of $PYUSD, Paypal will increasingly expand its presence in the Crypto environment. Before that, Paypal had appeared in this industry by allowing customers to buy, sell, own certain cryptocurrencies.
In my personal opinion, stablecoin service would only be the first steps of Paypal in particular and other traditional companies in general towards Crypto. With huge amounts of money flowing in the market every day, the next traditional companies to enter this market will be Paypal’s competitors in the traditional market: Skrill, Apple Pay, Shopify Payment, Amazon Pay,..
As more and more traditional companies enter the market, sooner or later the Crypto market will receive legitimate cash flows from the traditional market, in other words, the capitalization of the Crypto market would grow exponentially.