PayPal’s PYUSD Stablecoin Now Accessible on Venmo
PayPal continues to make strides in the cryptocurrency space with the integration of its stablecoin, PYUSD, onto the Venmo platform. This move comes just over six weeks after PayPal unveiled PYUSD with the goal of offering a stable digital value that links fiat dollars to the web3 ecosystem.
Select Venmo users can now access and transact with PYUSD, with a full-scale rollout expected in the near future. Venmo users will be able to purchase PYUSD and send it to friends and family on PayPal, Venmo, and compatible external wallets. This marks an essential development as it enables wallet interoperability between PayPal and Venmo, two platforms with millions of users each.
While PayPal emphasized the absence of fees for transfers between its users, it’s worth noting that blockchain network fees still apply when sending PYUSD to external wallets not owned by PayPal.
Since its launch in the open market, PYUSD has been made available on various exchanges, including Crypto.com, Bitstamp, Coinbase, and Kraken. Additionally, it’s supported by leading wallets such as MetaMask, Ledger, and Phantom, as well as custodians like Fireblocks, Copper, Paxos, and Fordefi. Bitpay and numerous decentralized applications have also integrated PYUSD into their platforms.
One significant milestone for PYUSD is its greenlisting by the New York State Department of Financial Services, which streamlines support for PYUSD by virtual currency entities licensed in New York.
PYUSD is an Ethereum-based, dollar-pegged stablecoin, backed by cash equivalents and short-term treasuries. While it has made notable inroads in the cryptocurrency market, its market capitalization currently stands at $44.3 million, in contrast to major stablecoins like Tether (USDT) and USD Coin (USDC), which are valued at $83.1 billion and $25.9 billion, respectively.
This development underscores PayPal’s ongoing efforts to bridge the gap between the traditional financial system and the cryptocurrency ecosystem. PYUSD is designed to offer both web3 and everyday payment solutions, aiming to provide a seamless experience for users across different financial platforms.
With PYUSD now accessible on Venmo, it introduces the concept of stablecoin interoperability at scale. While challenges and regulatory scrutiny persist in the crypto space, PayPal’s global recognition and commitment to providing innovative solutions could contribute to the broader adoption of cryptocurrencies and stablecoins.