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.
PayPal's stock has been struggling, but the author believes that the company is still in a favorable environment, with healthy metrics and valuations, and has the potential for future growth, particularly through its Venmo platform.
Australian crypto exchange Independent Reserve has partnered with PayPal to allow customers to fund their crypto accounts directly with fiat from their PayPal wallet and withdraw funds from the exchange, mitigating the risks posed by increasing bank restrictions on crypto exchange payments.
This article mentions the stock of PayPal (PYPL). The author's recommendation is to buy PayPal stock. The author's core argument is that PayPal is undervalued and has strong growth prospects. The key information and data provided include PayPal's historical stock performance, its acquisitions, the management team, its free cash flow, its competition in the buy now, pay later (BNPL) market, recent financial results, and industry comparisons.
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 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.
Paxos has released a transparency report confirming that its Ethereum-based stablecoin, PayPal USD (PYUSD), is fully backed by assets, with total tokens outstanding amounting to $44.4 million held in custody, primarily in U.S. Treasury reverse repurchase agreements.
PayPal's stablecoin ambitions are driven by potential savings on multicurrency transactions, but Tether co-founder William Quigley believes it is unlikely to bring much innovation and may primarily serve as a cost-saving measure for PayPal. Quigley explains that stablecoins allow PayPal to bypass financial intermediaries, conduct transactions on its private blockchain, and eliminate fees associated with currency conversions. He also highlights the potential profits that stablecoin operators can earn from interest-rate increases.
PayPal's stablecoin, PYUSD, has struggled to gain traction in the market, with a market capitalization of only $43.4 million compared to stablecoin leaders USD Coin and Tether, which have market capitalizations of $83 billion and $26 billion respectively, and trading volumes for PYUSD remain low.
Venmo is a financial application that allows users to make peer-to-peer money transfers and engage in cryptocurrency transactions, including buying, selling, and holding Bitcoin (BTC). However, there are limitations and risks associated with buying Bitcoin through Venmo, such as the lack of purchase protection and the inability to transfer crypto to other platforms or personal accounts.
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.
Main topic: PayPal and Venmo's credit and debit cards can now be added to Apple Wallet for in-person and digital transactions.
Key points:
1. PayPal and Venmo have extended their services to allow users to add their credit and debit cards to Apple Wallet.
2. The motivation for this expansion is driven by the increasing popularity of mobile wallets, with 42 percent of people in the United States using them.
3. With this integration, users can make in-person transactions using PayPal or Venmo with Touch or Face ID on Apple devices, as well as use Apple Pay for digital purchases.
