United States users outside Hawaii can now utilize PayPal's PYUSD stablecoin to fund cross-border money transfers to family and friends abroad with U.S. dollars. The service, operated by PayPal's Xoom, enables users to send funds to over 160 countries sans Xoom transaction fees. When choosing to fund transfers with USD converted from PYUSD, Xoom will convert the cryptocurrency to the U.S. dollar at no additional fees for the sender.

Funds can be sent to a recipient's bank account, mobile wallet, or financial institution for pickup. However, transactions not in U.S. dollars will undergo currency conversion, including a spread. The service is available to all U.S. users except those in Hawaii, where holding cryptocurrencies with PayPal is prohibited by law.

Paxos Trust Company in New York handles the issuance and custody of PayPal USD. Despite close to $200 million PYUSD issued since its launch, it falls short of other stablecoin market caps like USD Coin and Tether. PayPal aims to provide stable value for PYUSD to enhance user confidence and utility for commerce and payments.

Ripple also announced plans to introduce its U.S. dollar-backed stablecoin to compete in the stablecoin market. Concurrently, Nick van Eck, the son of a notable investment manager, is preparing to launch a U.S. dollar-backed stablecoin following a successful $12 million funding round.