PayPal has introduced the PYUSD stablecoin to facilitate money transfers for U.S. users to recipients outside the country, excluding Hawaii. This service allows U.S. users to convert PYUSD into USD in their PayPal Cryptocurrency Hub to send money abroad without fees to over 160 countries. The conversion process does not incur any crypto sale fees, and recipients will receive the funds in the currency specified by the sender.

Users can send funds to recipients through various means such as a bank account, mobile wallet, or financial institution pickup. Transactions not in USD are subject to currency conversion fees. The issuance and storage of PayPal USD are managed by Paxos Trust Company in New York.

Since its launch, around $200 million PYUSD has been issued, a significantly lower amount compared to other stablecoins in the market. PayPal aims to ensure stability in the value of PYUSD to increase user trust and usability for commercial and payment purposes, as stated by Jose Fernandez da Ponte, senior vice president of PayPal’s Digital Currency Group.

On the same day, Ripple revealed its plans to introduce its U.S. dollar-backed stablecoin to compete in the stablecoin market. Additionally, Nick van Eck, the son of well-known investor Jan van Eck, is planning to launch a new U.S. dollar-backed stablecoin following a successful $12-million funding round.