Daily Management Review

PayPal launches its own stablecoin


PYUSD is backed by US Treasury securities, dollar deposits, and other cash equivalents.

PayPal USD (PYUSD) by the largest debit electronic payment system in the world is the first stablecoin (a cryptocurrency whose rate is stabilized by connecting its quotes to traditional currencies or exchange-traded commodities), the company stated on its website.

"PayPal USD (PYUSD) is a new cryptocurrency. Stablecoins are backed by secure and liquid assets. You will be able to buy, sell, store, and transfer PYUSD on our app or website as it expands," the release says.

According to PayPal, PYUSD is backed by dollar deposits, U.S. Treasury securities, and other cash equivalents. This cryptocurrency has a unit value of one dollar per unit.

source: investopedia.com