PayPal’s USD-pegged stablecoin, PayPal USD, has surpassed a $1 billion market cap. Launched in 2023, PayPal USD is backed 1:1 by the US dollar and issued by Paxos Trust Company.
Significant Achievement by PayPal
PayPal USD competes with other regulated dollar-backed stablecoins like Circle Internet Financial’s USD Coin. PayPal’s President and CEO Dan Schulman shared the following in a 2023 statement: “The transition to cryptocurrencies requires a stable instrument that is digitally native and easily connected to fiat currencies like the US dollar.” PayPal USD is an ERC-20 token compatible with Ethereum and the only stablecoin supported on PayPal’s payment rails. According to PayPal, it is designed to be easily integrated by a large and growing community of external developers, wallets, and Web3 applications, as well as by crypto exchanges.
Details on the Subject
PayPal is taking steps to expand the accessibility of PayPal USD, including working with Anchorage Digital to launch a rewards program for customers holding PayPal USD assets. In May, PayPal launched PayPal USD on the Solana blockchain and partnered with Crypto.com, Phantom, and Paxos to integrate users into the network. Additionally, PayPal partnered with Web3 infrastructure provider MoonPay to enable cryptocurrency purchases using a PayPal account. This partnership was expanded in July to integrate users into the crypto prediction platform Polymarket. Coinbase also has an institutional custody arm and encourages users to hold stablecoins on its platform, offering around 5.2% annual percentage yield on USDC. Despite its recent successes, PayPal USD still lags far behind dollar-pegged stablecoin projects Tether and USDC, with market caps of approximately $118 billion and $35 billion, respectively.
Conclusion
PayPal USD has reached a significant milestone by surpassing the $1 billion market cap mark, affirming its competitiveness among other dollar-backed stablecoins. This success highlights the growing importance of digital assets and the efforts of major financial companies to integrate cryptocurrencies into traditional financial systems.
PayPal USD has reached a significant milestone by surpassing the $1 billion market cap mark, affirming its competitiveness among other dollar-backed stablecoins. This success highlights the growing importance of digital assets and the efforts of major financial companies to integrate cryptocurrencies into traditional financial systems.
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