PayPal has announced that all users in the United States, except for those in Hawaii, will now be able to use its native stablecoin, PayPal USD (PYUSD), to fund money transfers to friends and family abroad. This service is made possible through PayPal’s Xoom platform and is available to more than 160 countries with no transaction fees. By converting PYUSD to US dollars, users can easily send money abroad using PYUSD as a funding source. When selected, Xoom will convert PYUSD to USD with no crypto sale fee, and recipients will receive funds in their chosen fiat currency.
Through this service, users can send funds abroad to a recipient’s bank account, mobile wallet address, or a financial institution for pickup. Transfers in currencies other than US dollars will be subject to currency conversion, including a spread. This service is available to all US users except for those in Hawaii, where state law prohibits the holding of cryptocurrencies with PayPal. The process of issuing and holding PayPal USD is conducted by Paxos Trust Company in New York.
Since its launch in August, close to $200 million worth of PYUSD has been issued. This is significantly smaller compared to the market caps of other stablecoins like USD Coin (USDC), which is at $32.9 billion, and Tether (USDT), which is at $110 billion. PayPal’s main goal with PYUSD is to provide a stable value that builds user confidence and has practical applications for commerce and payments.
In related news, Ripple has announced its plans to launch its own US dollar-backed stablecoin, aiming to compete with the $150 billion stablecoin market. Nick van Eck, the son of prominent investment manager Jan van Eck, has closed a $12 million funding round to launch his own US dollar-backed stablecoin.
PayPal’s move to allow users to use PYUSD for international money transfers provides a convenient and reliable option for US users. The partnership with Xoom eliminates transaction fees and simplifies the process of sending funds abroad. This expansion of PayPal’s offerings aligns with the growing interest in stablecoins and the demand for digital payment solutions in today’s global market.
A $12 million funding round for Nick van Eck’s stablecoin? That’s impressive. PayPal better watch out for the new players in town.
With the launch of PYUSD, PayPal is further solidifying its position in the digital payment market. This is a win-win situation for both users and PayPal!
PayPal’s move to expand its offerings aligns perfectly with the growing interest in stablecoins and the demand for digital payment solutions. Exciting times ahead! 🌟💼