According to CoinDesk, Timothy Massad, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), said that this is the first time that a traditional financial company has launched its own stablecoin, and PayPal's stablecoin debut shows that the technology "has value beyond encryption." PayPal said, "We believe that this technology may benefit a wider range of payments."
As previously reported, PayPal launched the US dollar stablecoin PayPal USD (PYUSD) for transfers and payments. The stablecoin is issued by Paxos and is backed by US dollars, short-term government bonds and cash equivalents. It will gradually be opened to PayPal's customers in the United States.
