PayPal (NASDAQ:PYPL) stock is a hot topic among crypto traders on Monday after the payment services company launched its own token today.
The new token from PayPal is named PayPal USD (PY-USD). This is a new stablecoin that is being issued by Paxos Trust Company. Being a stablecoin, it’s tied to the price of the U.S. Dollar and is exchangeable on a one-for-one basis.
Dan Schulman, president and CEO of PayPal, said the following about the stablecoin.
“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. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Let’s go over everything crypto traders need to know about PayPal USD below!
PayPal Stablecoin Details
- Investors can transfer PayPal USD across Paypal accounts and external wallets.
- The token is also usable for sending person-to-person payments.
- Users of PayPal can also use the tokens to pay for transactions during checkout.
- Holders of the token can also exchange it for any of the other cryptocurrencies that PayPal supports.
- Likewise, that means crypto traders can also exchange other currencies for the PayPal stablecoin.
- PayPal notes that its token is backed by “U.S. dollar deposits, U.S. Treasuries and similar cash equivalents.”
- It also mentions that issuer Paxos Trust Company is “a fully licensed limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services.”
PYPL stock is up 1.4% as of Monday morning.
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InvestorPlace is home to all of the hottest stock deep dives traders need to know about on Monday! A few examples include what’s happening with shares of Nio (NYSE:NIO), DraftKings (NASDAQ:DKNG), and Palantir (NYSE:PLTR) stock today. All of that news is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
