CNBC on PayPal, Paxos' Stablecoin
CNBC writes, "PayPal's stablecoin is first dollar-backed digital currency from a major U.S. financial institution." They explain, "PayPal ... launched a U.S. dollar-backed stablecoin to help facilitate payments as its latest addition to its suite of crypto services. It's the first such move from a major U.S. financial institution. The new asset, called PayPal USD (PYUSD), was designed to address the 'emerging potential' to 'transform payments in Web3 and digitally native environments.' Its launch comes as market participants await a vote in Congress on a key stablecoin bill, which has just advanced to the House with three other crypto bills for the first time." The CNBC piece continues, "PayPal said the stablecoin's function is to reduce friction for in-experience payments in virtual settings and allow direct flows to developers. It's redeemable for dollars and backed by dollar deposits, short-term U.S. Treasurys and similar cash equivalents." Dan Schulman, president and CEO of PayPal, comments, "The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD." The article adds, "The PayPal stablecoin is issued by Paxos, a veteran of the stablecoin space and PayPal's brokerage partner for its crypto buying and selling services. Paxos also previously issued the dollar-pegged, Binance-branded stablecoin BUSD. It was ordered by the New York State Department of Financial Services in February to stop issuing BUSD, which marked the beginning of this year's decline in the stablecoin market cap." (See our July 27 People News," "Adam Ackermann Joins Paxos," which says, "Adam Ackermann, formerly of J.P. Morgan Asset Management and VaultLink, has joined Paxos as Head of Portfolio Management. (See Ackermann's LinkedIn post here.)
