Payments giant PayPal has rolled out a US dollar stablecoin, becoming the first online payment giant to adopt digital currencies for payments and transfers.
The new asset, called PayPal USD (PYUSD), aims to address the “emerging potential” to “transform payments in Web3 and digitally native environments,” according to a statement released by the company Monday. The stablecoin is designed to maintain a value of exactly $1.
Shares of the San Francisco Bay-area company jumped more than 2% following the news.
The stablecoin can be bought, sold, kept, or transferred directly on PayPal’s mobile app or by using its website, and can be sent as payment on PayPal without fees. Users can also convert PayPal USD to other cryptocurrencies.