PayPal launches stablecoin in crypto push
2023.08.07 10:17
© Reuters. FILE PHOTO: The PayPal logo is seen at an office building in Berlin, Germany, March 5, 2019. REUTERS/Fabrizio Bensch/File Photo
(Reuters) -Payments firm PayPal (NASDAQ:) on Monday launched a U.S. dollar stablecoin in a bid to boost the adoption of digital currencies for payments and transfers.
The stablecoin, known as PayPal USD, is backed by U.S. dollar deposits and short-term U.S Treasuries, and will be issued by Paxos Trust Co, according to the company.
PayPal’s shares rose 1.4% to $63.66.
Stablecoins are cryptocurrencies designed to be protected from the wild volatility that makes it difficult to use digital assets for payments or as a store of value.
PayPal USD is pegged to the dollar and will gradually be available to the company’s customers in the United States, the digital payments firm said.
Last month a U.S. congressional committee failed to come to an agreement on a bill to establish a federal regulatory framework for stablecoins.
Visa (NYSE:) had said in 2021 that it will allow the use of the cryptocurrency to settle transactions on its payment network.
