PayPal, the world’s largest payment platform, has launched its stablecoin to the Venmo platform. In a blog post dated September 20, PayPal confirmed that Venmo users can now utilize the PYUSD.
Primarily, the payment company seeks to provide customers with a market dominated by a stable currencies to establish a robust interconnection between the local fiat and digital currency. The introduction of PYUSD aims to allow Venmo users to transfer funds at a lower cost.
PayPal Expand to Venmo
According to the report, the launching of the PYUSD on Venmo will only be accessed by selected users for trial purposes. Afterward, the payment company will allow all Venmo users to access the stablecoin.
In this phase, the payment company plans to allow the users to buy and sell the PYUSD on PayPal, Venmo, and other external digital wallets. Report demostrated that PYUSD exhibits distinctive characteristics compared to the ordinary stablecoin.
Also PayPal underlined that the PYUSD will support wallet interoperability at zero cost. This feature enables transactions from PayPal to Venmo to be fast, convenient, and cost-free.
Launching the PYUSD on Venmo allows the two wallets to be connected to millions of PayPal and Venmo users. Additionally users with compatible external wallets will benefit from the Venmo PYUSD since Venmo customers can make payments through the PYUSD to qualified merchants.
PYUSD Market Perfomance
Besides streamlining the transaction processes, the PayPal team seeks to leverage the blockchain network to reduce costs and bolster the user experiences. In the announcement, the PayPal team was pleased to state that its PYUSD has established a significant presence in the crypto sector.
A recent report from Etherscan portrayed that the available PYUSD for supply amounts to $44.376 million. As of press, the PYUSD market capitalization reached $44.3 million in the last 24 hours, according to CoinMarketCap.
The PYUSD daily trading volume increased by 48%, reaching $4.4 million in a day. The market performance of PYUSD portrayed the readiness of the token to win the stablecoin battle. Even though high-profile stablecoins such as Tether (USDT) and USD Coin (USDC) have solidified their market dominance in the stablecoin sector, PYUSD anticipates breaking the odds.
Features of PYUSD
During the launching of the stablecoin, Paxos Trust Company agreed to support the issuance of the PYUSD. The stablecoin was pegged to the US dollar currency and short-term dollar treasuries.
In an August 7 update, Paxos generated approximately $24.9 million from its treasury to support PYUSD. After the launch, the PayPal community portrayed their interest in the new stablecoin. The surge in PYUSD transaction activity inspired fast-paced crypto exchanges such as Crypto.com, Coinbase, Kraken, and Bitstamp to list the stablecoin.
The PYUSD is also available on the MetaMask, Phantom, and Ledger wallets. The PYUSD has stretched its presence in best-performing custodial platforms such as Fireblocks, Paxos Fordefi, and Copper.
Following the expansion of PYUSD to multiple exchanges and decentralized applications (dAPPs), the payment company anticipates availing the stablecoin to various blockchain networks in the coming days. Besides the PYUSD expansion plan, the payment company is seeking to uphold compliance with the regulation.
In a previous announcement, PayPal received regulatory approval from the New York State Department of Financial Services, a state-owned agency regulating financial activities. The approval allowed PayPal to operate as a regulated entity that offers digital products that meet the regulatory requirements.
The payment company vowed to support the primary objective of PYUSD, which seeks to become the most regulated stablecoin. In the report, PayPal plans to deploy groundbreaking software to improve the privacy and security of the stablecoin. The payment company expects the stablecoin to meet the growing needs in Web3 and the payment sector.
Notably, launching the PYUSD aligns with PayPal’s mission of transforming the financial sector. For three years, PayPal has facilitated the buying and selling crypto assets.
In 2021, the payment company introduced the “Checkout with Crypto” feature to allow users to explore the digital sector. This feature was commonly used to review online businesses through cryptocurrency.