PayPal Stablecoin PYUSD Launches to Bridge Fiat and Web3; PYPL Stock 2% Up

person holding a phone showcasing PayPal

PayPal (NASDAQ: PYPL) is among the payment giants worldwide and it almost shook the financial space with the recent announcement. The payment carrier announced its own stablecoin on Monday. The U.S. dollar-pegged stablecoin is dubbed PayPal USD (PYUSD). 

In an official announcement made on Monday, August 7, PayPal noted that the “fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments.”

Along with the dollar deposits, the PayPal stablecoin will have the backing of U.S Treasuries and similar cash equivalents. Prominent stablecoin issue, Paxos Trust Co, will be responsible for the issuance of PYUSD and it will be issued on the Ethereum blockchain as an ERC-20 token, the company noted. 

With the bold move, PayPal becomes the first company in the financial payments arena to step into the cryptocurrency space. 

PayPal president and CEO, Dan Schulman stated, “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.”

The users within the United States have the opportunity to engage with the stablecoin through the convenience of PayPal's mobile application or website. This enables individuals to effortlessly purchase, vend, retain, or move the stablecoin.

Moreover, users can conveniently dispatch the stablecoin as payment to friends via PayPal, free from any additional charges. For added flexibility, PayPal patrons can seamlessly convert their PayPal USD into various other cryptocurrencies, all within the platform itself. 

Furthermore, the option to send PayPal USD to digital wallet addresses via the Ethereum cryptocurrency is also available, expanding the range of possibilities for users.

PayPal NASDAQ: PYPL Stock Price Reacts to PayPal Stablecoin

Following the news, the steep fall in PYPL stock price in the last several days has halted. The stock maintains $64.64 following an increase of 2.7% in the ongoing intraday trading session on Monday. 

TradingView Chart showing PayPal NASDAQ: PYPL stock price movement

Source : PayPal Holdings Inc. (NASDAQ: PYPL) Stock Price Movement on TradingView

PYPL stock is currently holding the support at $64. If there would be a trend reversal, the stock price could see a bounce back to $70. 

Disclaimer

The views and information shared in the article are the writer’s own perception and it does not anyhow promote or demote any entity. 



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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.