PayPal, the major United States-based payment processor, has announced that its stablecoin, PayPal USD (PYUSD), is now available on Venmo. This significant step was taken just over a month and a half following the introduction of PYUSD. The objective is to enhance the speed, affordability, and efficiency of digital transactions.
PYUSD is an on-chain stablecoin designed to serve as a secure digital representation of the US dollar. It is fully backed by physical assets, dollar deposits, US Treasuries, and cash equivalents. This means that for every PYUSD issued, an equivalent value exists in the real world.
PayPal Continues to Move Forward with its Crypto Strategy
The integration of PYUSD with Venmo is seen as a significant step towards increased adoption of cryptocurrency in the United States. Venmo is already a popular choice among US consumers, with one in four using the service.
The introduction of a new feature now enables transfers between PayPal and Venmo at no cost. This is a groundbreaking moment, marking the first time that a stablecoin has enabled free and speedy wallet interoperability on such a vast scale.
Venmo users now can acquire PYUSD and transfer it to their friends and family, not only within the Venmo and PayPal platforms but also to other compatible external wallets. However, standard blockchain network fees will be applicable for those utilizing other wallets or accepting PYUSD in a merchant capacity.
In an official press statement, PayPal expressed its unwavering commitment to the mission of PYUSD, which is to deploy a secure, regulated stablecoin on a large scale for both the web3 ecosystem and everyday transactions. They are eagerly anticipating sharing more updates in the future.
In August, Nansen, a firm specializing in blockchain analytics, revealed that approximately 90% of PYUSD was in the possession of wallets under the control of Paxos Trust.
On September 12, BitPay, a crypto company, declared its intention to incorporate PYUSD support, highlighting its potential for payments and the active involvement of its community.
PayPal has been progressively expanding its presence in the realm of cryptocurrency. It began accepting payments in digital assets in 2021 and established pathways for Web3 payments in 2023. The New York State Department of Financial Services has included PYUSD in its approved list of coins, further legitimizing its use.