PayPal Launches Dollar-Denominated Stablecoin
Financial transactions firm PayPal has introduced a new stablecoin to enhance the use of digital currencies for payments and transfers. The stablecoin, backed by dollar deposits and short-term US Treasury bonds, will be issued by Paxos Trust.
Increased Reliance on Digital Currencies
PayPal’s stablecoin aims to offer a more stable alternative for digital asset transactions. It is designed to protect against extreme volatility that often hinders the use of cryptocurrencies for payments and as stores of value.
Availability for US Customers
PayPal plans to gradually make the stablecoin available to its customers in the United States.
Stock Performance
Following the announcement, PayPal’s stock rose by 1.4% to $63.66.