Today, PayPal, the company that always finds ways to make your money feel more virtual than it already is, announced that its customers in the US can now use its stablecoin to fund international payments. Now, you can swap your PYUSD for good ol’ greenbacks to send money internationally via Xoom.
Related: PayPal Halts UK Crypto Purchases: Navigating Regulatory Waves
PYUSD, introduced by PayPal, is a digital token operating on the Ethereum blockchain. It’s a stablecoin pegged to the dollar, backed by cash equivalents and short-term treasury bonds. PayPal launched PYUSD last year, with Paxos Trust Co. issuing the token. In their press release, the company explained that customers can now convert US dollars (PYUSD) into dollars and then send money to “recipients in roughly 160 countries” without any fees through their payment platform, Xoom.
PayPal stablecoin
Last year, PayPal launched its stablecoin with hopes it would become the “go-to” in the payment world. It’s smaller than other cryptocurrencies’ stablecoins, like the USDT Tether, which is the third-largest cryptocurrency with a whopping $106 billion market cap. In comparison, PYUSD has a market capitalization of $109 million.
Now, what’s a stablecoin, you ask? In this case, it’s tied to the US dollar. These tokens do not rise or fall in value as much as Bitcoin or Ethereum.
They’re mostly used by people to complete transactions when they do not have immediate access to fiat currencies stored in a traditional bank, speeding up the trading process.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptos, and Digital Currency Group, stated this move was “based on our goal of driving mainstream adoption of cryptocurrencies.”
When we decided to introduce PayPal USD to the market, we wanted to achieve two goals: create something that would have stable value to maximize user trust, and ensure its usefulness for commerce and payments.
Making Transfers Through the Xoom Platform
Xoom, a pioneer in digital money transfers, is a quick and easy way to send money, pay bills, and top up phones for friends and family in approximately 160 countries worldwide. With Xoom, individuals can enjoy a swift and dependable method for sending money by downloading the Xoom or PayPal mobile application or by visiting Xoom.com or PayPal.com.
A new funding option, available to customers in the US starting today, will allow Xoom users in the US to easily convert PYUSD into US dollars in the associated PayPal crypto hub and use them as a funding source to send money to recipients. Xoom users will not pay a transaction fee when using PayPal USD to fund eligible transfers to friends and family abroad.
By introducing the option to fund cross-border money transfers with US dollars converted from PYUSD, Xoom now offers users from the US a simple and reliable way to send money abroad using PYUSD as a funding source. If this option is selected, Xoom will convert PYUSD from the user’s US-based PayPal crypto hub into US dollar currency without a cryptocurrency sale fee, and recipients will receive funds in the fiat currency chosen by the sender.
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This move aligns with PayPal’s mission to drive mainstream adoption of cryptocurrencies by offering a stable and reliable digital currency option. Leveraging PYUSD further enhances the accessibility and usability of digital currencies in worldwide payment.
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