PayPal has officially introduced its own U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), designed for digital payments and peer-to-peer transfers. Issued by Paxos Trust Company, PYUSD is fully backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents. It can be redeemed 1:1 for U.S. dollars and will gradually become available to PayPal customers in the United States, with plans to extend to Venmo users soon.
Eligible U.S.-based PayPal users will be able to:
- Transfer PYUSD between their PayPal accounts and compatible external wallets,
- Use PYUSD for person-to-person payments,
- Select PYUSD as a payment option during checkout,
- Convert other supported cryptocurrencies to and from PYUSD.
Notably, PYUSD is the only stablecoin supported within the PayPal network and is issued as an ERC-20 token on the Ethereum blockchain.
Market Snapshot
At the time of writing, according to coinmarketcap data:
- BTC: $29,214.30 | 24h change: +1.23%
- ETH: $1,829.28 | 24h change: +0.59%
- BNB: $242.09 | 24h change: +0.48%
- XRP: $0.6228 | 24h change: +1.09%
- WLD: $2.042 | 24h change: -1.53%
- DOGE: $0.07354 | 24h change: -0.14%
- ADA: $0.2907 | 24h change: +0.53%
- MATIC: $0.6655 | 24h change: +0.47%
Blockchain.com Secures Major Payment Institution License in Singapore
Cryptocurrency exchange Blockchain.com has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). The license, granted on August 1, 2023, follows the company’s receipt of in-principle approval in September 2022. It permits Blockchain.com to offer regulated digital payment token (DPT) services to institutional and accredited investors globally.
Brazil’s Central Bank Names Its CBDC ‘DREX’
The Central Bank of Brazil has announced “DREX” as the official name for its upcoming central bank digital currency (CBDC), also referred to as the digital real. The name was revealed during a live broadcast and combines multiple symbolic elements: D for digital, R for real, E for electronic, and X for transactions. This initiative builds upon the success of the country’s instant payment system, Pix, and aims to further modernize the financial ecosystem.
Multiple Bitcoin ETF Approvals Possible, Says Cathie Wood
Cathie Wood, CEO of ARK Investment Management, suggested that the U.S. Securities and Exchange Commission (SEC) may approve several spot Bitcoin exchange-traded funds (ETFs) at once. This marks a shift from her earlier stance that ARK would likely be first to receive approval due to its early application. Other firms including BlackRock, Fidelity, WisdomTree, VanEck, and Invesco have also filed for spot Bitcoin ETFs.
U.S. Crypto Anti-Money Laundering Bill Faces Hurdles
The Digital Asset Anti-Money Laundering Act, proposed by Senators Elizabeth Warren and Roger Marshall, is encountering delays in the Senate. The bill has been referred to the Senate Banking Committee but has not yet been scheduled for discussion. It seeks to apply traditional financial compliance standards—such as reporting transactions over $10,000—to cryptocurrency miners, validators, and wallet providers. Critics argue that these entities lack the capacity to meet such requirements and that the bill could hinder industry growth.
2024 Implementation Unlikely for U.S. Crypto Tax Rules
New cryptocurrency tax reporting rules in the U.S.—which would require crypto firms to submit forms similar to the 1099 used in traditional finance—are unlikely to take effect in 2024. Although the IRS has finalized the proposal, the White House has yet to begin its internal review. Experts note that the process of public commentary and implementation typically extends over many months, potentially pushing effective dates into the following year.
UAE to Develop Carbon Credit System on Venom Foundation Blockchain
The UAE’s Ministry of Climate Change and Environment has partnered with the Venom Foundation and an industrial innovation group to develop a carbon credit system on a blockchain. The immutable and transparent nature of distributed ledger technology will allow carbon credits to be securely traded. Government entities can issue or sell these credits to businesses, which may use them to offset emissions or trade them to other organizations.
Solana-Based Cypher Protocol Loses $400,000 in Exploit
The Solana-based decentralized exchange Cypher protocol lost an estimated $400,000 due to a smart contract exploit. The team has frozen the affected contracts and is attempting to negotiate with the attacker for the return of user funds.
Bitstamp Initiates Funding Round for European Derivatives Expansion
Cryptocurrency exchange Bitstamp has begun a fundraising effort, with Galaxy Digital serving as financial advisor. The capital will support the launch of derivatives trading in Europe early next year, as well as expansion into Asian markets and growth in the U.K. CEO Jean-Baptiste Graftieaux clarified that the company is not for sale and is focused on strategic growth.
Tether Says PayPal Stablecoin Will Not Affect USDT
Paolo Ardoino, CTO of Tether, stated that the introduction of PayPal’s stablecoin will not impact Tether’s USDT, since PYUSD is initially available only in the U.S.—a market where Tether does not operate. He also suggested that PayPal’s entry might reduce competition for Tether in international markets and viewed the move as a positive development for the crypto industry.
U.S. Lawmakers Push for Stablecoin Regulation After PayPal Launch
Following PayPal’s stablecoin announcement, Patrick McHenry, Chairman of the House Financial Services Committee, emphasized the need for clear stablecoin legislation in the U.S. He referenced the recently proposed Clarity for Payment Stablecoins Act as a bipartisan effort to establish consumer protections and encourage innovation.
Uniswap Deploys on Coinbase’s Base Network
Uniswap, a leading decentralized exchange, has officially deployed on Base—a Layer-2 network developed by Coinbase. Users can now provide liquidity and swap tokens on Base directly via the Uniswap web application.
Analysts Weigh In on PayPal Stablecoin Impact
Market observers suggest that PayPal’s entry into the stablecoin market could drive competition and influence regulatory behavior. With over 431 million active users, PayPal’s move is compared to BlackRock’s validation of Bitcoin—potentially having an even more immediate impact given its reach in global payments.
Paxos Hails PayPal Stablecoin as ‘Watershed Moment’
Walter Hessert, Head of Strategy at Paxos, described PYUSD as a “watershed moment” for cryptocurrency, highlighting its regulatory backing by the New York Department of Financial Services (NYDFS). Should Paxos face bankruptcy, PYUSD holders would be protected—assets would be returned and not treated as part of the estate.
Law Firm Fenwick Sued for Alleged Role in FTX Fraud
FTX customers have filed a lawsuit against law firm Fenwick & West, accusing it of facilitating fraud by helping structure entities and transactions that concealed misuse of customer funds. This is the second proposed class action against the firm related to its work with FTX.
Frequently Asked Questions
What is PYUSD?
PYUSD is a U.S. dollar-backed stablecoin launched by PayPal and issued by Paxos. It is designed for digital payments, transfers, and conversions within the PayPal ecosystem and on compatible external wallets.
How is PYUSD different from other stablecoins?
PYUSD is the first stablecoin issued by a major traditional financial services company with broad consumer reach. It is regulated by the NYDFS, offers 1:1 redeemability for USD, and integrates directly with PayPal’s payment infrastructure.
Can I use PYUSD outside the United States?
Currently, PYUSD is only available to PayPal customers in the U.S. The company may explore international expansion in the future.
What are the implications of PayPal entering the stablecoin market?
PayPal’s move signals growing institutional acceptance of digital assets and may accelerate regulatory clarity and adoption of stablecoins for everyday payments and remittances.
How do I buy or convert to PYUSD?
Eligible U.S. PayPal users can purchase PYUSD through their account, use it for payments, or convert other supported cryptocurrencies into PYUSD.
What blockchain is PYUSD built on?
PYUSD is an ERC-20 token operating on the Ethereum blockchain, which enables compatibility with a wide array of wallets, exchanges, and decentralized applications.
👉 Explore more about stablecoin regulations
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research and exercise caution when engaging with digital assets.