PayPal Enables International Money Transfers Utilizing its Native Stablecoin, PYUSD
Summary:
PayPal has expanded its services to allow all US users, excluding Hawaii, to facilitate international money transfers using its native stablecoin, PayPal USD (PYUSD), which is converted into U.S dollars. The service is run by Xoom and is free of any transaction fees. Transfers can be sent to a recipient's bank account, a mobile wallet, or a financial institution for cash pickup. However, transactions not in U.S. dollars will incur currency conversion charges. Central to PYUSD's objective is to offer a constant value to build user trust and safeguard its commercial and payment utility.
PayPal is enabling all its users in the United States, except those residing in Hawaii, to make international money transfers to loved ones using U.S. dollars transferred from its native stablecoin, PayPal USD (PYUSD). The offering, operating under PayPal's Xoom, was announced on April 4 and allows PYUSD-funded money transfers to over 160 nations, free of any Xoom transaction charges. The organization communicated that the inclusion of PYUSD as a funding source for foreign money transfers will facilitate a reliable and convenient process for U.S. users. Moreover, when users opt for this method, Xoom will transmute the PYUSD from the user’s PayPal Cryptocurrency Hub into U.S. dollars, free of any crypto sales charge, and the beneficiaries will obtain the funds in the predefined fiat currency. This service allows the transfer of funds overseas to a receiver’s bank account, mobile wallet address, or a financial establishment for collection. All transactions not in U.S. dollar currency will be subjected to currency conversion involving a spread. Regulatory restrictions in Hawaii make it impossible for PayPal users in the state to hold cryptocurrencies. The issuance and custodianship of PayPal USD are overseen by Paxos Trust Company in New York. Since its debut in August of last year, around $200 million PYUSD has been created — a figure that pales in comparison to USD Coin (USDC) at $32.9 billion and Tether (USDT) at $110 billion. PayPal’s Digital Currency Group's senior vice president, Jose Fernandez da Ponte, shared that the main aim of PYUSD is to offer a stable value to maximize user trust and maintain its relevance for commerce and payments. On the same day, Ripple declared its plans to introduce its own U.S. dollar-backed stablecoin in competition with the $150 billion stablecoin market. In a related development, on April 3, Nick van Eck, son of investment guru Jan van Eck, has plans to unveil his own U.S. dollar-backed stablecoin after securing $12 million in funding.
Published At
4/4/2024 6:04:06 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.