PayPal announced on Monday that it has launched its own stablecoin, which is backed by US dollar deposits and can also be redeemed for US dollars
WASHINGTON (Pakistan Point News / Sputnik - 07th August, 2023) PayPal announced on Monday that it has launched its own stablecoin, which is backed by US Dollar deposits and can also be redeemed for US dollars.
A stablecoin is a form of cryptocurrency, the value of which is pegged to a reference asset, for instance, precious metals, fiat Currency or another cryptocurrency.
"Fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments. To address that emerging potential, PayPal today announced the launch of a US dollar-denominated stablecoin, PayPal USD," the company said in a press release.
PayPal's stablecoin is fully backed by US dollar deposits, short-term US treasuries and similar cash equivalents, and can be redeemed 1:1 for US Dollars, the release added.
The stablecoin will be issued by Paxos Trust Company and rolled out in the coming weeks, but will not be available in the US state of Hawaii, according to the release.
