US PayPal allows stablecoin PYUSD to be used in international payments
The new service allows customers in the US to transfer money internationally using PayPal's PYUSD stablecoin through the Xoom payment service without being charged transaction fees.
According to an announcement on the evening of April 4, 2024 by Paxos - the issuer of the PayPal USD (PYUSD) stablecoin - customers in the US can transfer money internationally with the company's PYUSD through the cross-border payment service Xoom .
Customers in the US can now convert PYUSD to US dollars (USD) and send money to "recipients in approximately 160 countries" without being charged transaction fees, according to a PayPal statement.
PayPal believes the market will welcome new, more cost-effective ways to send money internationally, when "the global average fee to send $200 according to a World Bank report is more than 6%".
Starting today, US customers of PayPal's @Xoom can now convert the Paxos-issued PYUSD to USD to fund cross-border money transfers. This a major step forward in driving cost-effective and secure mainstream adoption of stablecoins 🚀
Learn more here: https://t.co/YCJ8WySc0F— Paxos (@Paxos) April 4, 2024
Since its launch in August 2023, the PYUSD stablecoin created by global electronic payments giant PayPal has struggled to find a foothold in the cryptocurrency industry, forcing its issuer Paxos to make changes. change to improve the situation.
According to data from CoinMarketCap, the capitalization value of PYUSD at the time of writing was 190 million USD, an increase of 6 times the figure of 44 million USD when it was first launched, but has decreased by about 30% compared to 273 million USD. la noted in January 2024 when Aave considered integrating this stablecoin. However, it is still nothing compared to the total supply of 100 billion USD of the largest stablecoin in the crypto industry, Tether (USDT), or tens of billions of dollars of USDC and DAI.
Therefore, one of Paxos's moves to help increase the level of adoption for PYUSD is to integrate this stablecoin into international payment services.
PayPal's announcement also comes as the stablecoin market is forming a "heating up" trend with the recent war between MakerDAO and Aave, Ethena's high yield model and the emergence of more and more projects. Stablecoins like Agora...are a hotly discussed topic related to this type of asset.
Most recently, Ripple announced plans to deploy stablecoins on two blockchain networks, Ethereum and Ripple, with collateral assets being USD, short-term US Government bonds as well as some "cash equivalent" assets. " other.
Ripple CTO David Schwartz shared that his stablecoin will have a legal relationship with the US institution, will be "easier than the approach that competitor Tether is using now", and "someday US users can "deposit stablecoins at banks, as well as merge business and everyday applications with traditional financial markets".
In its statement, Ripple said the stablecoin market could reach $2.8 trillion by 2028.
Specifically, this global payment platform revealed that the SEC's legal enforcement unit sent a request for them to provide documents about PayPal USD (PYUSD) on the evening of November 1, 2023.
The above information appeared just about 3 months after PayPal launched stablecoin PYUSD in early August 2023.
PayPal USD (PYUSD) is a stablecoin backed by US dollars, short-term US Treasury bonds and other cash equivalents - similar to popular traditional stablecoins such as USDT and USDC). . It is known that PYUSD is an ERC-20 token on the Ethereum platform.
PYUSD was jointly issued by PayPal and Paxos, the stablecoin company behind Binance's BUSD that was ordered to stop operations by the US government. However, PYUSD is being commented on by the community as having no special uses. Not only that, it is built on old technology, smart contracts also have many design flaws, and especially are developed on Ethereum, the blockchain is famous for its expensive transaction fees.
At the time of writing, according to data from CoinGecko, PYUSD's market capitalization is valued at approximately $159 million, with trading volume over the past 24 hours reaching $2.7 million.
The sharp increase in PayPal USD adoption comes as major exchanges such as Coinbase and Kraken list stablecoins on their platforms. In September 2023, PayPal announced the integration of stablecoin PYUSD into its mobile payment service Venmo, allowing users to buy PYUSD and send it to friends and family.
In addition, PayPal is also taking its "expansion" action when it announced that it had received 4 blockchain-related patents by the end of September 2023.
