PayPal USD Seeks to Disrupt Dollar Supremacy through Blockchain Openness

PayPal has launched

USD (PYUSD), a stablecoin that maintains a 1:1 value with the U.S. dollar and is completely collateralized by U.S. dollar deposits, Treasury securities, and equivalent cash assets. Debuting in August 2023 through a partnership with Paxos Trust Company, PYUSD aims to streamline transactions within PayPal’s platform and reach into wider blockchain use cases. The stablecoin is available on both the and networks, enabling users to purchase, sell, send, and utilize PYUSD for online shopping, peer payments, and exchanges with other digital currencies.

Eligible users in the United States can access PYUSD through PayPal’s website and app, where basic actions like buying, selling, and moving the stablecoin between PayPal accounts incur no fees. However, converting PYUSD into other cryptocurrencies does include transaction fees. Developers can also integrate the programmable token into dApps, wallets, and blockchain services, potentially connecting traditional finance with Web3 platforms.

Recent market statistics show PYUSD adoption has been consistent, with more than 810 million tokens now in circulation and a market value close to $810 million. According to the latest data, PYUSD holds a 0.03% share of the global crypto market, with $14.28 million traded in the last 24 hours. Over the past year, the stablecoin’s price has ranged between $0.97 and $1.08, reflecting its price stability.

PayPal and Paxos emphasize transparency as a central principle. Since September 2023, Paxos has released monthly reports detailing the reserve assets backing PYUSD. In addition, independent accounting firms provide monthly attestations to confirm the composition and transparency of these reserves, aiming to foster trust among users and institutions.

By incorporating PYUSD into its payment systems, PayPal is advancing the mainstream use of stablecoins for online commerce and international payments. The stablecoin is already being used for e-commerce, automatically converting to U.S. dollars at checkout. Its compatibility with external wallets and other blockchain networks also broadens its application beyond PayPal’s own ecosystem.

The introduction of PYUSD demonstrates PayPal’s ongoing strategy to strengthen its presence in the digital economy by adopting blockchain technology to streamline payments and minimize transaction obstacles. With its firm regulatory backing and expanding user base, PYUSD is positioned to rival established stablecoins such as

and , and it could play a significant role in shaping the future of digital payments and decentralized finance.