Yesterday, PayPal announced the integration of the PYUSD stablecoin with the Xoom cross-border payments app. Customers in the US can use stablecoins to fund payments with no transaction fees. However, if the recipient receives a different currency, the normal exchange rate will apply.
“When we decided to bring PayPal USD to market, we had two goals we wanted to accomplish: create something of stable value that maximizes user trust, and It’s about creating things that are useful,” said Jose Fernández da Ponte, the company’s senior vice president. his PayPal, a blockchain, cryptocurrency and digital currency group;
“Enabling Xoom users in the U.S. to use PYUSD to fund cross-border transfers will foster mainstream adoption of cryptocurrencies while also providing an easy way to send money securely and at low cost to friends and family. Our goal is to provide a way to
PayPal launched its stablecoin in August last year and currently has a market capitalization of $190 million. At launch, da Ponte acknowledged that initial use cases would likely be related to his Web3. However, he expressed interest in using them for cross-border payments, gaming, and micropayments.
To date, companies in the DeFi space account for a significant portion of PYUSD balances. For example, the top three wallets account for 49% of stablecoin balances and are linked to Frax Finance, Defiance Capital, and Curv. Frax and Curv are both his DeFi protocols.
new stablecoin column
PayPal was one of the first major fintech companies to introduce retail stablecoins, but others are expected to begin operations soon. Ripple announced its plans yesterday.
Société Générale Forge’s EURCV is currently listed on a cryptocurrency exchange. And next year, Deutsche Bank’s asset management arm DWS will launch AllUnity, a euro stablecoin joint venture with Galaxy and Flow Traders. In the US, another asset management company, WisdomTree, recently obtained a trust charter allowing it to issue stablecoins.
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