- PayPal has introduced its Ethereum-based stablecoin, PYUSD, to Venmo, enabling select users to buy and transfer the cryptocurrency.
- PYUSD aims to connect fiat dollars to the web3 ecosystem, streamlining everyday payments with reduced costs.
- Since its launch, PYUSD has been listed on major exchanges, integrated with leading wallets, and greenlisted by the New York State Department of Financial Services.
PayPal recently announced the integration of its stablecoin, PYUSD, into Venmo, a popular mobile payment platform owned by PayPal. This move indicates not only PayPal’s ambitions in the crypto world but also the growing trend of mainstream financial entities embracing digital currencies.
The integration of PYUSD into Venmo isn’t merely an extension of services. It signifies a broader vision by PayPal. Now, select Venmo users can purchase PYUSD, and this feature will be made available to all users in the forthcoming weeks.
The most notable aspect? The ability for users to send stablecoins to each other without any cost – a first in the crypto world. However, users should be mindful that transferring from Venmo to a non-PayPal owned crypto wallet will involve fees.
Jose Fernandez da Ponte, PayPal’s head of crypto, highlighted the significance by stating, “This is the first time that you’re going to have interoperability between the PayPal and Venmo wallets.” This move might just be the boost PYUSD needs to climb ranks in the stablecoin market.
A Slow Start to PYUSD
PYUSD, launched in August, is an Ethereum-based stablecoin backed by cash equivalents and short-term U.S. treasuries. Paxos Trust Co. oversees its issuance. With its introduction, PayPal hoped to integrate it as part of the larger payment infrastructure, acting as a bridge between traditional fiat currencies and the emerging world of digital assets.
However, while PayPal’s venture into the stablecoin market was met with much enthusiasm, PYUSD still has some catching up to do. To provide some perspective, PYUSD’s market cap currently hovers around $44.3 million. In contrast, major players like Tether (USDT) and USD Coin (USDC) boast market caps of $83.1 billion and $25.9 billion, respectively.
The Road Ahead
PayPal’s commitment to PYUSD is clear. Not only is it pushing for its adoption among mainstream users, but it’s also ensuring that the stablecoin garners support in the wider crypto ecosystem. Already, top exchanges like Crypto.com, Coinbase, and Kraken have listed PYUSD. Its presence is also felt in leading wallets and is supported by renowned decentralized applications.
Furthermore, in a bid to boost its adoption, PYUSD has been greenlisted by the New York State Department of Financial Services. This endorsement means virtual currency entities licensed in New York will find it easier to support PYUSD.
PayPal’s decision to integrate PYUSD into Venmo and its broader commitment to ensuring its adoption in the crypto world are signs of larger shifts in the financial world. As boundaries between traditional financial tools and digital assets blur, entities like PayPal are ensuring they’re at the forefront.