One of the largest payments companies in the U.S. is doubling down on crypto amid an increasingly uncertain regulatory environment.
On Monday, PayPal launched PayPal USD, a stablecoin backed by U.S. dollar deposits, short-term U.S. Treasuries, and other cash equivalencies.
Paxos, a white-label stablecoin maker that was previously under scrutiny from the Securities and Exchange Commission for its work with Binance, is the issuer of PayPal USD.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” Dan Schulman, president and CEO of PayPal, said in a statement.
Users will be able to transfer the stablecoin, an ERC-20 token on top of the Ethereum blockchain, between their PayPal and external wallets, pay for purchases at checkout with PayPal USD, and convert any of PayPal’s supported cryptocurrencies, which are currently Bitcoin, Bitcoin Cash, Ether, and Litecoin.
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