After announcing its new payment stablecoin last month, PayPal revealed on Wednesday that Paypal USD (PYUSD) is now available to Venmo users for transacting with peers.
- Initially available to “select users,” access will expand to all Venmo users in the coming weeks, according to the company’s announcement.
- Venmo, a mobile payments app owned by PayPal, will allow users to buy and send PYUSD to other Venmo users and PayPal wallets.
- PayPal touts free stablecoin transfers between PayPal and Venmo users, marking a first for wallet interoperability at scale.
“Individuals using compatible external wallets, and merchants accepting payments in PYUSD, will also be able to receive transfers from Venmo users,” added the firm. “Blockchain network fees apply.”
- PYUSD is an Ethereum-based stablecoin pegged to the U.S. dollar, launched by PayPal in August.
Users can currently buy PYUSD on various exchanges, including Crypto.com, Coinbase, and Kraken.
- Stablecoins are digital assets pegged to stable values, such as the U.S. dollar. Paypal’s stablecoin is backed by a combination of USD deposits and short-term treasuries.
- PYUSD’s market cap is currently $44.3 million, far behind stablecoin giants like Tether (USDT) and USD Coin (USDC). Paxos Trust holds $45.3 million in assets backing the coin, according to a recent report.
- Paxos recently claimed responsibility for a strange Bitcoin transaction that paid a $500,000 transaction fee, which blockchain analysts first attributed to PayPal.
- PayPal users can also buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the platform.
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