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PayPal (NASDAQ:) USD (PYUSD), the U.S. dollar-denominated stablecoin issued by Paxos Trust and powered by PayPal, has been officially added to BitPay’s list of supported cryptocurrencies, expanding the payment options for the platform’s merchants and consumers. The integration of PYUSD into BitPay’s system was announced on Wednesday, marking another significant step in PayPal’s ongoing expansion into the cryptocurrency sector.
PYUSD was launched in August 2023 and has since been listed on various platforms. The introduction of the stablecoin to BitPay enables users to make payments using their BitPay Wallet, PayPal Wallet, Metamask, or any other compatible wallet. Among the first merchants to accept PYUSD is Xsolla, a video game commerce start-up, which now allows customers to purchase goods online using the PayPal stablecoin.
In addition to making payments at supported merchants, BitPay users can hold PYUSD within a self-custody wallet or use it to purchase gift cards from over 250 retailers and brands. Several merchants already accept PYUSD as a form of payment including Namecheap, APMEX, CRM Jewelers, Jomashop, American Cancer Society, OneGold, VULTR, AMC Theatres, CyberGhost VPN, and Hublot.
The rollout of PYUSD represents the latest development in PayPal’s foray into cryptocurrency payments. The company initially began allowing U.S. users to buy, sell, and hold cryptocurrencies in 2020. In 2021, it introduced a service called Checkout with Crypto that enabled customers to use cryptocurrencies for goods and services at millions of merchants. By 2022, PayPal had granted its users the ability to move their crypto out of their accounts and into other wallets.
The creation of a stablecoin was a logical next step for PayPal according to CEO Dan Schulman. The company’s stablecoin is designed to facilitate the growth of Web3 and DeFi applications by providing another on-ramp for fiat currency into the ecosystem.
PayPal plans to make PYUSD available to U.S.-based customers gradually, with the full rollout expected to be completed by Q4 2023. To buy and sell PYUSD, users need to create a PayPal account and fulfill the necessary know-your-customer (KYC) requirements.
In terms of transparency, Paxos issues monthly reports detailing the assets backing PYUSD and the reserves are audited by a third-party. The first such report was released in September 2023, confirming that the stablecoin is fully backed by assets, with $44.4 million in total tokens outstanding as of August 31, 2023, and a notional position value totaling $44.5 million.
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