PayPal Introduces PYUSD Stablecoin for International Money Transfers
PayPal is revolutionizing international money transfers for US users by allowing them to fund these transfers through the conversion of their native stablecoin, PYUSD, into US dollars. This service is currently available to all US users except those in Hawaii.
Integration of PayPal’s PYUSD Stablecoin via Xoom
Through its subsidiary, Xoom, PayPal enables PYUSD-funded transfers to over 160 countries without Xoom transaction fees. When selected, Xoom converts the PYUSD in the user’s PayPal crypto hub into USD without any crypto sales fees, and recipients receive the funds in their chosen fiat currency.
Service Terms
In introducing the option to fund cross-border money transfers with US dollars converted from PYUSD, Xoom now offers an easy and reliable way for US users to send money abroad using PYUSD as their source of funding.
Funds can be sent to a recipient’s bank account, mobile wallet address, or withdrawn from a financial institution. Transactions not denominated in US dollars will be subject to currency conversion, including a spread. All US users can access the service, except for those in Hawaii, where holding cryptocurrencies via PayPal is prohibited by state legislation.
Paxos, based in New York, is responsible for the issuance and custody of PYUSD. Since its launch in August last year, nearly 200 million PYUSD tokens have been issued, a figure significantly lower than the $32.9 billion market cap of USD Coin (USDC) and the $110 billion market cap of Tether (USDT).
Jose Fernandez da Ponte, Senior Vice President of PayPal’s Digital Currencies Group, states that the company’s goals regarding PYUSD are to create “a stable value to maximize user confidence and ensure its utility for commerce and payments.”
On the same day, Ripple announced its intention to launch its own dollar-backed stablecoin, aiming to compete in the $150 billion stablecoin market.
