PayPal has announced that its PayPal USD (PYUSD) stablecoin is now accessible to Venmo users, expanding the options for seamless transactions among peers. This move comes after the recent unveiling of the payment stablecoin.
Initially, PYUSD will be available to “select users,” with plans to roll it out to all Venmo users in the coming weeks, as stated by PayPal.
Venmo, a mobile payment app under the PayPal umbrella, will enable users to purchase and send PYUSD to fellow Venmo users and PayPal wallets.
One notable feature highlighted by PayPal is that it offers free stablecoin transfers between PayPal and Venmo users, representing a significant step in wallet interoperability on a broader scale.
However, it’s worth noting that blockchain network fees will apply when transferring to compatible external wallets or making payments to merchants who accept PYUSD.
PYUSD is an Ethereum-based stablecoin that is pegged to the U.S. dollar, and it was launched by PayPal in August. Users can currently acquire PYUSD on various cryptocurrency exchanges, including Crypto.com, Coinbase, and Kraken.
Stablecoins, like PYUSD, are digital assets designed to maintain a stable value, typically by being pegged to a reliable asset like the U.S. dollar. PayPal’s stablecoin is backed by a combination of USD deposits and short-term treasuries.
In terms of market capitalization, PYUSD currently stands at $44.3 million, which places it behind leading stablecoin giants like Tether (USDT) and USD Coin (USDC). Notably, Paxos Trust holds $45.3 million in assets that back PYUSD, according to a recent report.
It’s worth mentioning that Paxos recently claimed responsibility for a peculiar Bitcoin transaction that featured a $500,000 transaction fee, initially attributed to PayPal by blockchain analysts.