Individuals with compatible external wallets, as well as merchants who embrace PYUSD for payments, will be able to receive transfers from Venmo users.
In the latest development, financial payments giant PayPal announced that its PYUSD stablecoin will be now available to users on Venmo. In its blog post on Wednesday, September 20, PayPal said that its USD-pegged stablecoin is available to Venmo users and will be “rolling out in the coming weeks”.
Individuals with compatible external wallets, as well as merchants who embrace PYUSD for payments, will be able to receive transfers from Venmo users.
The payments giant said:
“PYUSD is already present in native crypto experiences, and continues to be made more broadly available as the ecosystem grows. In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken.”
The news comes approximately six weeks following PayPal’s announcement of the stablecoin’s launch, issued by Paxos Trust. The PYUSD is backed by US dollar deposits, short-term Treasuries, and similar cash equivalents, this latest development surfaced.
About PayPal’s PYUSD Stablecoin
PYUSD, a stablecoin linked to the US dollar and introduced by PayPal in August, is currently accessible for purchase on several exchanges, including Crypto.com, Coinbase, and Kraken. Stablecoins are digital assets anchored to stable values, such as the US dollar, and PayPal’s stablecoin is supported by a blend of USD deposits and short-term treasuries.
Presently, PYUSD boasts a market capitalization of $44.3 million, although it lags behind prominent stablecoins like Tether (USDT) and USD Coin (USDC). A recent report indicates that Paxos Trust holds $45.3 million in assets supporting the coin. Paxos Trust has links to a peculiar Bitcoin transaction involving a $500,000 transaction fee, initially attributed to PayPal by blockchain analysts.
In August, Nansen, a blockchain analytics company, revealed that approximately 90% of PYUSD stays in wallets managed by Paxos Trust. Meanwhile, on September 12, cryptocurrency firm BitPay disclosed its plans to incorporate support for PYUSD, citing its utility for payments and active community participation.
PayPal has been steadily expanding its presence in the cryptocurrency sector, enabling digital asset transactions in 2021 and creating pathways for Web3 payments in 2023. Notably, the New York State Department of Financial Services has included PYUSD on its list of approved coins, commonly referred to as the “greenlist”, signifying its compliance with regulatory standards.
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