PayPal, a prominent player in the payments industry, is introducing its own stablecoin named 'PYUSD.' This digital currency, built using the Ethereum blockchain, is designed to maintain a 1:1 value with the US dollar and can be exchanged for actual US dollars. Notably, this initiative stands out as the first significant step of its kind taken by a major US financial institution.

Despite having paused its stablecoin development due to increased regulatory attention towards cryptocurrencies, PayPal's recent announcement is being hailed as a daring move by experts in light of the challenging regulatory environment in the US.