PayPal Launched New Stablecoin PayPal USD, Issued by Paxos

American financial technology company PayPal launched a new stablecoin called PayPal USD (PYUSD) on Aug. 7.

The U.S. dollar-pegged stablecoin will be issued by Paxos Trust Co. and fully backed by U.S. dollar deposits, short-term Treasurys and similar cash equivalents. It’s built on Ethereum and “designed for digital payments and Web3.”

The issuance of PayPal USD is overseen by Paxos Trust Company, a fully licensed limited-purpose trust company, subject to regulatory oversight by the New York State Department of Financial Services.

The company claims it will soon be available as a mode of payment for various purchases. While there are multiple stablecoins available in the crypto market, PayPal will be the first launched by a major payment processor.