Payment giant PayPal is set to launch its USD-backed stablecoin PYUSD, issued by Paxos Trust—a veteran in stablecoin issuance with experience handling BUSD and USDP. But can PYUSD truly become a global cryptocurrency gateway? Let’s explore.
PYUSD Stablecoin Debuts with Congressional Backing
PayPal’s new stablecoin, PYUSD (PayPal USD), will be issued on the Ethereum blockchain as a fiat-collateralized stablecoin. Its reserves will comprise USD deposits, short-term Treasuries, and cash equivalents, with availability for U.S. users via PayPal and external wallets in coming weeks.
Key highlights:
- Regulatory Endorsement: U.S. House Financial Services Chair Patrick McHenry praised PYUSD, calling it proof that a clear regulatory framework could make stablecoins "a pillar of 21st-century payments."
- Market Competition: It remains unclear whether PYUSD will list on crypto exchanges to rival USDT or USDC.
👉 Why PYUSD could redefine digital payments
PYUSD: A Gateway to Mass Crypto Adoption?
Crypto analyst S4mmy.eth noted that PayPal’s 4.2 billion users and its $2.7B annual system maintenance costs position PYUSD to:
- Slash operational expenses through blockchain efficiency.
- Drive merchant adoption, potentially accelerating mainstream crypto use.
Speculation suggests eBay (which once owned PayPal) might integrate PYUSD, further expanding its reach.
Binance Shifts Stablecoin Strategy Post-BUSD
After U.S. regulators halted Binance’s BUSD, the exchange pivoted to alternatives like TUSD and FDUSD. Coinbase CEO Brian Armstrong revealed Binance reduced USDC holdings, possibly reallocating to FDUSD—though USDC’s market cap remains stable.
CoinGecko Tags "SEC-Alleged Securities"
Amid regulatory uncertainty, CoinGecko introduced a label for tokens the SEC classifies as securities (e.g., BNB, ADA, SOL). The list includes 24 high-profile tokens, though the SEC has targeted 68 in total.
👉 Navigating crypto regulatory challenges
FAQ
Q: How is PYUSD different from USDT or USDC?
A: PYUSD is backed by PayPal’s reserves and targets PayPal’s massive user base, while USDT/USDC dominate general crypto trading.
Q: Will PYUSD be available outside the U.S.?
A: Initially for U.S. users, but global expansion is likely given PayPal’s reach.
Q: Why did Binance reduce USDC exposure?
A: Likely to diversify post-BUSD and align with new partner stablecoins.