The cryptocurrency market is witnessing significant advancements, especially in stablecoin projects. PayPal has recently announced that users across the United States, excluding Hawaii, can now utilize PayPal USD (PYUSD), converted from a local stablecoin, to fund international money transfers to family and friends.

PayPal's Significant Update

In an announcement on April 4th, it was revealed that PayPal's Xoom service will facilitate transfers to over 160 countries using PYUSD without any transaction fees. The company stated that with PYUSD as a funding source, US users can convert their PYUSD from PayPal's Crypto Center to USD without any additional fees, ensuring that recipients receive money in their preferred fiat currency.

Through this service, funds can be sent to an overseas recipient's bank account, mobile wallet address, or picked up at a financial institution. Transactions not in US dollars will undergo currency conversion with a spread. This service is available to all US users, except those located in Hawaii where holding cryptocurrency is banned by state laws.

Recent Developments in Stablecoin Market

Paxos Trust Company in New York is responsible for issuing and safeguarding PayPal USD. Since its launch in the previous year, over 200 million dollars' worth of PYUSD have been issued, significantly lower compared to USD Coin at 32.9 billion dollars and Tether at 110 billion dollars.

Jose Fernandez da Ponte, Senior Vice President of PayPal's Cryptocurrency Group, emphasized that the company's aim with PYUSD is to establish a stable value, enhance user trust, and make it practical for payments.

On the same day, Ripple disclosed its plan to introduce a US dollar-backed stablecoin to enter the 150 billion dollar stablecoin market. Additionally, Nick van Eck, son of investment management expert Jan van Eck, is gearing up to launch a new US dollar-backed stablecoin post securing 12 million dollars in a financing round on April 3rd.

This article was first published on COINTURK NEWS: PayPal Enables Cross-Border Transfers Using Stablecoin