PayPal Stablecoin Debuts on Venmo: All You Need to Know
- PayPal’s native stablecoin, the PYUSD, has officially debuted on Venmo.
- The rollout has been restricted to a few “select users,” and a broad-scale launch will be coming in the next few weeks.
- The transactions will be free and fast, as per the announcement.
- Users who support blockchain wallets can also send PYUSD, but network fees will apply.
The native stablecoin of popular payments platform PayPal, PYUSD, has officially debuted on Venmo, an American mobile payment service founded in 2009. This move ensures that the stablecoin reaches a larger audience and the adoption rate of PYUSD increases manifold.
Interestingly, a statement from the platform was released on September 20 regarding the availability of the “regulated, dollar-denominated stablecoin 100% backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents,” on Venmo, which itself is owned by PayPal. However, a full-scale launch is yet to be announced, and only a few “select users” will have the capability to initiate transactions using the PYUSD stablecoin.
According to the press release, “Venmo users are able to purchase PYUSD and send it to friends and family on PayPal, Venmo, and compatible external wallets.” A full-scale launch will be announced in the coming weeks, and as per the payment platform, the payments made using the stablecoin will be fast and free, connecting two wallets with millions of users each.
Additionally, those who are using “compatible external wallets, and merchants accepting payments in PYUSD will also be able to receive transfers from Venmo users,” but it is important to mention here that these transactions won’t be free and network fees will apply.
“In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken; leading wallets like MetaMask, Ledger, and Phantom; custodians and institutional service providers like Fireblocks, Copper, Paxos, and Fordefi; crypto payment service providers like Bitpay; and already supported by some of the most widely used decentralized applications,” noted the company.
PayPal also noted that the PYUSD stablecoin has been greenlisted by the New York State Department of Financial Services (NYDFS), which means that the entities that are licensed in New York will be able to support PYUSD. The firm noted that it is “fully committed to the mission behind PYUSD: deploying a safe, regulated stablecoin at scale both for the Web3 ecosystem and for everyday payments, and we look forward to sharing more updates in the future.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
