PayPal Holdings Inc. is rolling out a stablecoin, the first by a large financial company and a potentially significant boost to the sluggish adoption of digital tokens for payments.
The PayPal USD (PYUSD) stablecoin will be issued by Paxos Trust Co. and fully backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents, the San Jose, California-based payments company said on Monday. It's pegged to the dollar and will gradually become available to PayPal's customers in the United States.
With PYUSD, PayPal CEO Dan Schulman is seeking to cement the company's dominance in digital payments by leaning on technology that enables instant and lower-cost transfers without a central intermediary. PayPal shares have slumped 33 percent in the past 12 months, the sixth-worst performer on the Nasdaq 100 Index, as the pandemic-era surge in online payments abated.
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