In a significant move for the world of digital payments, BitPay has officially added PayPal’s PYUSD, the U.S. dollar-denominated stablecoin, to its list of supported cryptocurrencies. This integration, announced on Wednesday, marks another milestone in PayPal’s ongoing expansion into the cryptocurrency sector.
PYUSD was introduced in August 2023 and has rapidly gained traction across various platforms. Its inclusion in BitPay’s ecosystem now empowers users to conduct transactions using their BitPay Wallet, PayPal Wallet, Metamask, or other compatible Ethereum wallets. Notably, Xsolla, a video game commerce startup, has become one of the first merchants to accept PYUSD, opening the doors for customers to make online purchases using this PayPal-backed stablecoin.
BitPay users can not only make payments but also store PYUSD in a self-custody wallet or utilize it to acquire gift cards from over 250 renowned retailers and brands. Already, several merchants, including Namecheap, APMEX, CRM Jewelers, and AMC Theatres, embrace PYUSD as a valid payment method.
This expansion aligns with PayPal’s ongoing venture into cryptocurrency payments, which began in 2020 by allowing U.S. users to buy, sell, and hold cryptocurrencies. In 2021, the company introduced “Checkout with Crypto,” enabling crypto payments at millions of merchants. By 2022, PayPal offered the flexibility for users to move their crypto holdings to external wallets.
PayPal CEO Dan Schulman has emphasized that the creation of a stablecoin was a natural progression for the company, with PYUSD poised to play a vital role in fueling the growth of Web3 and DeFi applications by offering a fiat gateway into the ecosystem.
While the gradual rollout of PYUSD to U.S.-based customers is planned, it’s expected to be fully accessible by Q4 2023. To engage with PYUSD, users must create a PayPal account and satisfy the necessary know-your-customer (KYC) requirements.
Paxos, the issuer behind PYUSD, maintains transparency through monthly reports and third-party audits. The latest report from September 2023 confirms that PYUSD is fully backed by assets, with $44.4 million in total tokens outstanding as of August 31, 2023, and a notional position value totaling $44.5 million.