Paypal Launches US Dollar-Denominated Stablecoin PYUSD on Venmo – On Wednesday, Paypal, the payment giant, unveiled that the stablecoin PYUSD has been integrated into Venmo. According to Paypal, this stablecoin asset will become accessible to a group of Venmo users initially, with a gradual expansion to all users over the next few weeks.
The introduction of Paypal’s PYUSD stablecoin to Venmo has been confirmed, with the initial launch being targeted at a specific subset of Venmo users. However, the plan is to eventually offer all Venmo customers the ability to acquire PYUSD and transmit it to their contacts on Paypal, Venmo, and compatible external wallets. The company points out that transfers between Paypal users and Venmo are described as “fast and free,” with the exception of any blockchain network charges.
It’s important to note that PYUSD operates as an ERC20 token, which implies that it is subject to fees associated with the Ethereum fee market and block space. For instance, as of September 20, 2023, at 2:00 p.m. (ET), etherscan.io reports transaction costs for transferring an ERC20 token ranging from $2.65 to $2.91 per transaction.
In addition to this, Paypal’s announcement highlights that PYUSD is now accessible on various platforms, including Coinbase, Crypto.com, Bitstamp, Kraken, MetaMask, Ledger, Phantom, Bitpay, Fireblocks, and others. Furthermore, the payments company underscores its recent approval by the New York State Department of Financial Services.
This latest development follows PYUSD’s initial transparency report, which disclosed that its reserves are backed by cash and U.S. Treasury reverse repurchase agreements. As of September 20, there are approximately 44.37 million PYUSD coins in circulation. PYUSD is currently held by 698 unique addresses, and these wallets have collectively conducted 3,354 transactions since the currency’s inception. Notably, the top 100 holders together own 99.96% of the PYUSD supply, which amounts to 44,358,474.05 PYUSD tokens.