PayPal has taken a significant step in broadening its crypto footprint by announcing that its recently launched stablecoin, PayPal USD (PYUSD), will soon be available to Venmo users. Currently accessible to a select group, the stablecoin is expected to roll out to the entire Venmo user base "in the coming weeks," according to a company statement.
Backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents, PYUSD comes with the assurance of stability. Upon its initial launch last month, approximately $24.9 million worth of PYUSD was issued by the Paxos Trust Company.
Since then, the total supply of circulating PYUSD has surged to $44.376 million, per Etherscan data.
PYUSD: A Rising Star in the Crypto Ecosystem
Within weeks of its debut on the open market, PYUSD has already made a notable impact.
According to a company blog post, the stablecoin is "already present in native crypto experiences, and continues to be made more broadly available as the ecosystem grows." Notably, PYUSD has been listed on major crypto exchanges such as Crypto.com, Bitstamp, Coinbase, and Kraken.
Additionally, it is supported by popular crypto wallets like MetaMask, Ledger, and Phantom, as well as custodians like Fireblocks, Copper, Paxos, and Fordefi. Its rapid adoption across various platforms is a testament to its potential.
PYUSD is also accepted by crypto payment service providers like Bitpay and integrated into some of the most widely used decentralized applications, amplifying its utility across the burgeoning digital landscape.
Fees and Interoperability: The Financial Dynamics
When it comes to fees, PayPal has clarified that sending PYUSD from a Venmo account to a different crypto wallet not owned by PayPal will incur charges.
However, in a groundbreaking move, the company announced that transfers of PYUSD between PayPal and Venmo accounts will be both "fast and free." According to Wednesday's statement, this marks "the first example of a stablecoin enabling wallet interoperability at scale with no cost." The introduction of PYUSD on Venmo could be seen as a game-changer in the realm of digital assets, especially in terms of speed, cost, and ease of transactions.
By bridging two massive digital wallets—PayPal and Venmo—with millions of users each, this move promises to create a more fluid and interconnected financial ecosystem. It reflects the burgeoning convergence between traditional finance and the rapidly evolving world of cryptocurrencies, offering users more flexibility and options than ever before.