PayPal introduces its stablecoin to Venmo users
PayPal has revealed that its PYUSD stablecoin, designed for payments and transfers, is now accessible through Venmo. This stablecoin, fully backed by US dollar deposits and similar assets, provides selected users with a regulated, dollar-denominated digital currency.
The payment giant said the move helps facilitate digital value transactions, connecting fiat dollars with the web3 ecosystem, ultimately reducing friction in everyday payments while enhancing speed and cost-efficiency. Furthermore, individuals using compatible external wallets and merchants accepting PYUSD payments will be able to receive transfers from Venmo users, with blockchain network fees being applicable.
“PYUSD is already present in native crypto experiences, and continues to be made more broadly available as the ecosystem grows. In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken; leading wallets like MetaMask, Ledger and Phantom; custodians like Fireblocks, Copper, Paxos and Fordefi; crypto payment service providers like Bitpay; and already supported by some of the most widely used decentralized applications,” the company said in a blog post.
PayPal Coin has also been greenlisted by the New York State Department of Financial Services. NYDFS has a reputation for stringent regulatory oversight, and its approval credits PYUSD as a complaint asset with the regulatory standards to operate in the state of New York.
PYUSD’s launch and backing by Paxos Trust Company, with its foundation on U.S. dollar deposits, short-term U.S. Treasuries, and comparable cash equivalents, position it as a stablecoin with a robust foundation. The incorporation of PYUSD into Venmo aligns with the growing trend of stablecoins entering mainstream financial platforms and marks another step in the cryptocurrency industry’s broader adoption and integration with traditional finance systems.
Earlier this month, PayPal expanded its range of cryptocurrency-related services as the payments behemoth continues to increase accessibility and utility for its extensive user base. A fresh feature introduced is the capability for PayPal wallet users to convert their cryptocurrencies into PayPal credit through an “on and off-ramp” system.
This expansion is part of PayPal’s ongoing efforts to strengthen its presence in the cryptocurrency space and offer a broader array of financial services. Importantly, this service extends beyond wallets and is also accessible to decentralized applications (dApps) and non-fungible token (NFT) marketplaces, further broadening the scope of cryptocurrency-to-fiat conversions.