- The media said PayPal Holdings has launched the PYUSD stablecoin on its payment network.
- The firm has been working on the project since early 2022. It was frozen during the cryptocurrency winter due to increased regulatory scrutiny.
PayPal, a payment service provider, has launched its own dollar-backed stablecoin, PYUSD. This was reported by Bloomberg, citing a statement from the company.
Stablecoin issuance provides fintech firm Paxos. It was the organization that acted as the issuer of BUSD until it suspended the mint in February 2023 under pressure from U.S. regulators.
PYUSD will be backed by the dollar, U.S. Treasury bonds and “similar cash equivalents,” the publication stressed. PayPal users will have access to the asset soon, the company added here.
CEO Dan Shulman is thus seeking to strengthen the firm’s position as a leader in the digital asset market, Bloomberg reports. It should be noted that neither PayPal, nor the CEO of the organization has not yet commented on the situation.
At the request of the publication, the head of digital assets of the company, Jose Fernandez da Ponte, stressed that the organization sees demand for an alternative payment instrument due to the high concentration of the market.
Rumors that the firm is working on the launch of its own steiblcoin appeared back in January 2022. The company was forced to lay off about 2,000 employees in early 2023 and then said it was suspending development of the project.
In the past 12 months, PayPal’s stock has declined in value by more than 34%, according to data from exchange operator Nasdaq. In July, the quotes crossed the $75 mark, but then collapsed to $62: