American online payment service provider PayPal is launching a stablecoin.
According to industry sources on the 8th, PayPal announced the day before that it will launch a stablecoin. A stablecoin refers to a virtual currency designed to minimize price volatility by being pegged to the value of the US dollar, euro, or other currencies. This is the first time a fintech company combining IT and financial services has launched a stablecoin. The stablecoin, named 'PayPal USD (PYUSD),' will be issued by Paxos, the issuer of Binance USD (BUSD), the stablecoin of the world's largest virtual asset exchange Binance.
PayPal explained that 'PYUSD' is "designed to revolutionize payments in Web 3.0 and digital environments" and "can be redeemed for US dollars and other currencies."
Dan Schulman, CEO of PayPal, said, "To transition to digital currency, a stable tool that is digital and easily connected to fiat currencies like the US dollar is necessary," adding, "Based on our experience, we believe this stablecoin can contribute to the growth of digital payments."
PayPal has more than 400 million active accounts worldwide and has been offering services that allow users to pay with virtual assets since 2020.
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