Seamlessly Aligning with the Web2 Business Environment The Use and Development of PayPal Stablecoin PYUSD
PayPal was founded in 1998 and is an online third-party payment service provider. Elon Musk was once a co-founder. Currently, PayPal is the largest third-party payment provider globally. In Taiwan, PayPal partners with E.Sun Bank, allowing users to withdraw US dollars or Taiwanese dollars from their PayPal accounts using E.Sun Bank’s Global Pass.
Since 2020, PayPal has entered the cryptocurrency market, allowing users to buy, sell, and hold cryptocurrencies. The PayPal-issued stablecoin PYUSD (PayPal USD) was officially launched in August 2023. At the Consensus conference on May 29th, it was announced that PayPal has partnered with Solana, with PYUSD currently ranking seventh in market value. PYUSD is issued by Paxos with a circulation of $399 million (compared to USDT’s circulation of $112 billion).
PayPal’s stablecoin PYUSD serves various purposes and developments, including the ability to purchase and hold cryptocurrencies within the PayPal wallet. PayPal has obtained a virtual currency business license from the New York State Department of Financial Services, and PYUSD supports multiple blockchain applications. The collaboration with Solana is expected to bring further developments in the future.
In 2020, PayPal began deploying cryptocurrency payment features, allowing users to use cryptocurrencies for checkout and payment. PayPal has also introduced the ability for US users to buy, hold, and sell cryptocurrencies. The launch of PYUSD aims to facilitate business transactions between the US, the UK, and the EU using stablecoins. The integration of PYUSD with various blockchains will enable smoother commercial transactions.
PYUSD, which follows the Ethereum ERC-20 standard, is designed for Web3 and supports integration with third-party exchanges, wallets, dApps, and NFT markets. Developers can utilize PYUSD to create their products, connecting traditional financial services with regulated and programmable cryptocurrencies. PYUSD can be used for various B2B transactions, such as salary payments, expenses, and cross-border settlements.
Unlike USDC and USDT used in DeFi exchanges and financial products, PYUSD focuses on commercial payment functions, supporting blockchain integration to facilitate business transactions. PYUSD can be exchanged at a 1:1 ratio with the US dollar through PayPal and Venmo. PayPal’s collaboration with Solana aims to enhance the speed and cost-effectiveness of transactions, benefiting commercial users requiring rapid cross-border payments.
