Main topic: PayPal launches its own stablecoin, PayPal USD, pegged to the US dollar.
Key points:
1. PayPal USD is backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents.
2. The stablecoin is issued on the Ethereum blockchain by the Paxos Trust Company, regulated by the New York State Department of Financial Services.
3. Users can buy, sell, send, and use PayPal USD for payments, as well as transfer it to external wallets or convert other cryptocurrencies.
PayPal has launched its own stablecoin called PayPal USD (PYUSD) in the United States, aiming to eliminate price volatility in digital currencies and facilitate confident payments, despite unclear regulatory guidelines for digital assets in the country. PayPal's large user base and market share in online payment processing could significantly impact stablecoin adoption. However, there are potential advantages and disadvantages associated with PYUSD, including its potential to onboard mainstream users to the digital economy and the lack of regulatory clarity in the US.
BingX, a cryptocurrency exchange, has made a strategic investment in Moonbox, an AI and Web3 startup, to foster innovation in the blockchain ecosystem and advance the development of generative AI-powered NFTs and applications.
Cryptocurrencies pegged to the dollar are posing a potential threat to Visa and PayPal, highlighting the potential in digital payments, although this trend is not yet reflected in the stock market.
Coinbase has announced its plans to list PayPal's stablecoin, PYUSD, becoming the second major U.S.-based exchange to embrace the digital asset and signaling the rapid mainstream acceptance of the stablecoin.
PayPal is integrating artificial intelligence (AI) into its operations, including using AI to detect fraud patterns and launching new AI-based products, while also acknowledging the challenges and costs associated with AI implementation.
Coinbase CEO Brian Armstrong shared ten emerging ideas in the cryptocurrency space that excite him, including the creation of a CPI-linked stablecoin, on-chain reputation systems, on-chain advertising, and decentralized labor markets.
BlackRock's entry into the crypto space with its application for a Bitcoin exchange-traded fund (ETF) marks a significant turning point that dispels the notion of cryptocurrencies as a passing trend, signaling the growing institutional interest in Bitcoin and the crypto industry.
Colorado residents can now use cryptocurrency, including Bitcoin and Ethereum, to renew their driver's licenses and vehicle registrations through PayPal, with the state's Department of Motor Vehicles accepting digital assets as payment.
Coinbase has launched a new crypto lending service for institutional clients, offering overcollateralization and secured loans in the wake of the bankruptcies of similar firms Genesis and BlockFi.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
PayPal has launched an "Off Ramp" service that allows US users to convert crypto tokens to USD directly from wallets into PayPal accounts, providing secure and convenient options for crypto users.
Crypto exchange Coinbase has confirmed its decision to integrate the Lightning Network, a layer 2 payment protocol, in order to enable faster and cheaper Bitcoin transactions and compete against newer cryptocurrency projects.
Bitcoin (BTC) and Ethereum (ETH) experienced stable prices over the week, while Bitcoin Cash (BCH) and Toncoin (TON) saw notable price increases, and Stellar (XLM) suffered a decrease; Sony is developing a blockchain network in collaboration with Startale Labs, PayPal launched crypto to USD off-ramps, and Deutsche Bank partnered with Taurus for custody and tokenization services.
The U.S. Federal Reserve has launched FedNow, the country's first government real-time payment system, allowing banks and credit unions to instantly transfer money for their customers and improve inter-bank and retail transactions, although concerns remain about competition with private-sector entities. However, while FedNow does not use blockchain technology, its goal aligns with blockchain innovations of enabling instant peer-to-peer transfers and low-cost payments, and blockchain projects may benefit from leveraging FedNow's infrastructure. Nonetheless, decentralization and user-first approaches in Web3 payment systems could offer greater financial inclusion and transform the payments space.
Petra, a crypto wallet developed by Aptos Labs, is integrating Coinbase Pay into its applications to address the challenges faced by web3 users, aiming to streamline onboarding and offboarding processes and improve user experience and accessibility in the crypto space.
Crypto is poised to create a new investable asset class globally and will revolutionize the internet, requiring new business models, metrics, and research structures, as well as a framework to analyze value flows within the tech stack, particularly in relation to Ethereum's layer 2 solutions.
PayPal's stablecoin, backed by the US dollar, has become available on the Crypto.com exchange, which now holds the deepest liquidity for trading pairs with the PayPal USD (PYUSD) stablecoin globally.
Coinbase, the top US crypto exchange, is focusing on international markets due to regulatory uncertainty in the US and aims to bring a billion people into crypto.
