After announcing its new payment stablecoin last month, PayPal revealed on Wednesday that Paypal USD (PYUSD) is now available to Venmo users for transacting with peers.
- Initially available to “select users,” access will expand to all Venmo users in the coming weeks, according to the company’s announcement.
- Venmo, a mobile payments app owned by PayPal, will allow users to buy and send PYUSD to other Venmo users and PayPal wallets.
- PayPal touts free stablecoin transfers between PayPal and Venmo users, marking a first for wallet interoperability at scale.
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“Individuals using compatible external wallets, and merchants accepting payments in PYUSD, will also be able to receive transfers from Venmo users,” added the firm. “Blockchain network fees apply.”
- PYUSD is an Ethereum-based stablecoin pegged to the U.S. dollar, launched by PayPal in August.
Users can currently buy PYUSD on various exchanges, including Crypto.com, Coinbase, and Kraken. - Stablecoins are digital assets pegged to stable values, such as the U.S. dollar. Paypal’s stablecoin is backed by a combination of USD deposits and short-term treasuries.
- PYUSD’s market cap is currently $44.3 million, far behind stablecoin giants like Tether (USDT) and USD Coin (USDC). Paxos Trust holds $45.3 million in assets backing the coin, according to a recent report.
- Paxos recently claimed responsibility for a strange Bitcoin transaction that paid a $500,000 transaction fee, which blockchain analysts first attributed to PayPal.
- PayPal users can also buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the platform.
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