PayPal Adds New American Dollar-Backed Stablecoin For Payments To Its Suite Of Crypto Services

Paypal is making history as America’s first financial institution to rollout out the latest addition to its modes of payment, which is designed to better its currently available crypto services.

This launch will be in the form of an American dollar-backed stablecoin that helps users carry out payments. The project has been dubbed PayPal USD and it was created keeping in mind the new technology available which can shift payments towards the world of Web3 and environments that are more digitally native for users to benefit from.

This particular launch comes at a time when participants in today’s growing market keep on waiting for the American Congress to pass the bill regarding stablecoin in the country. This comes alongside three more bills linked to the world of Crypto that just recently managed to get to the House in no time.

The integral function of stablecoin seems to be related to decreasing friction for several payments taking place virtually and enabling the direct flow of cash toward developers. These would be redeemed for American dollars and supported by deposits made through the currency, cash equivalents, as well as US treasury as well.

This particular move that is being looked upon as a shift to digital currency needs a stable type of payment, the company’s President mentioned in a post recently. Therefore, PayPal says it represents innovation and hence feels the great responsibility to give users the most innovative options that serve as a foundation that ensures growth for digital payments via this new rollout.

The launch of this news saw the company’s shares increase by 2% and even more after that. And it’s a clear indication of how positively people are seeing this decision.
The stablecoin would be rolled out by Paxos who is a veteran in this field and also happens to be the firm’s leading partner in terms of brokerage for the cryptocurrency division, both buying as well as selling.

We also soon saw Paxos roll out a Binance-based stablecoin called BUSD. But the hype did not last long as it received orders from the NY State Department to stop the action immediately and bar all such rollouts from taking place in February of this year. This was the start of 2023’s fall in the stablecoin market.

The market cap of USDC, which happens to be the country’s largest stablecoin to receive dollar backing, saw a fall of 41% since the start of this year. It was under the management of Centre that was outlined by Circle and entailed crypto exchange through Coinbase.

For those who might not be too clear on the concept of stablecoins, they’re another name reserved for cryptocurrencies where the price tags are linked to some kind of asset. But they are created in a manner that’s less volatile when compared to other virtual currencies out there today. We did not see them receive immunity from 2023’s regulatory crackdown that the country witnessed against cryptocurrency and during the year’s start, the banking issues that arose too.

Hence, you can use this for trading purposes of various other kinds of crypto assets. Be it Bitcoin, ether, or another- the choice is yours. But since they do not actually enter the classic system of finances that we see ruling the market today, most traders get the chance to go in and go out of a position at a swifter pace than normal. And it would certainly be cheaper in comparison with dealings taking place with currencies whose behavior is flatter such as the American dollar.

Read next: Google's 'Incognito' Saga: A $5 Billion Lawsuit Takes an Unexpected Turn
Previous Post Next Post