Published on september 26, 2024, 12:32 am
Image source: Fox News
```json [ "TLDR: In 2020, PayPal allowed retail customers to buy, sell, and hold cryptocurrencies. Recently, PayPal Business accounts in the US (except New York) gained the same crypto access. PayPal introduced PYUSD stablecoin pegged to USD, overcollateralized for stability. PYUSD expanded to Solana network for cost-efficient transactions. Confidential transactions were added on Solana for privacy. Despite market cap growth to $1 billion, PYUSD faces competition but shows potential with integration into platforms like PayPal." ] ```
In 2020, PayPal started offering individual retail customers the ability to engage in purchasing, selling, and holding cryptocurrencies directly from their PayPal and Venmo accounts. This marked a significant step for the crypto world. In a recent announcement on Sept. 25, PayPal shared that PayPal Business accounts have now been granted the same access to buying, selling, and trading crypto directly from their PayPal accounts. This new feature is now accessible to all US merchants nationwide except for those located in New York.
Jose Fernandez da Ponte, the senior vice president of blockchain, cryptocurrency, and digital currencies at PayPal, expressed his thoughts on this new functionality. He mentioned that merchants using this service can also opt to withdraw their digital assets to external wallets or other more secure forms of storage.
Moreover, back in August 2023, PayPal introduced the PYUSD stablecoin. The PYUSD stablecoin is pegged to the United States Dollar (USD) and was launched in collaboration with Paxos. This stablecoin is fully overcollateralized by USD deposits and short-term cash equivalents—ensuring stability by maintaining a 1:1 ratio with the US dollar.
With an eye towards scalability and cost-efficiency, PayPal extended its PYUSD stablecoin onto the Solana network. By leveraging Solana’s (SOL) notably lower transaction fees compared to other networks like Ethereum, PayPal aims to promote adoption for everyday transactions such as buying coffee or lunch at restaurants. The reduced costs on Solana render even the smallest transactions economically viable when compared to other blockchains with higher fees and slower processing times.
Furthermore, in an added privacy measure for users on the Solana network utilizing PYUSD, confidential transactions were implemented. These transactions obscure payment amounts from public view while still ensuring compliance through transparent transaction records.
Despite growing to a notable $1 billion market capitalization recently, PYUSD remains behind leading dollar-pegged stablecoins like Tether (USDT) with a market cap of $118 billion and Circle’s USDC with a market cap of $35 billion as of August 2024. Although it faces stiff competition from established stablecoins, PYUSD’s integration into mainstream platforms like PayPal signifies continued growth potential in the evolving crypto space.
Original article posted by Fox News
