PayPal USD should be issued with the help of Paxos Trust. Stablecoin will be backed by U.S. dollar deposits, short-term Treasury bonds and similar cash equivalents. At first, the coin will only be available to PayPal customers in the US.
PayPal’s senior vice president of digital and cryptocurrencies, Jose Fernandez da Ponte, previously spoke about the possibility of launching a stablecoin.
“We are exploring stablecoins.. For the sake of striving to move forward we will of course work closely with the relevant regulatory authorities,” the top executive said.
PayPal said in February that it had put development of its own stablecoin on hold. The decision was influenced by an investigation by US regulators into Paxos.
In a quarterly report filed with the U.S. Securities and Exchange Commission (SEC), PayPal said the amount of its crypto assets increased 56% in the first quarter 2023.