Crypto markets remain largely flat despite the recent announcement from financial giant PayPal that it will soon issue its own stablecoin, PayPal USD (PYUSD). Bitcoin (BTC) has traded just over $29,100 in European morning hours, a level it has largely remained at for the past five days, and other major cryptos such as Ether (ETH), BNB (BNB), Cardano (ADA), Dogecoin (DOGE), and Avalanche blockchain’s AVAX (AVAX) have seen little change. Shiba Inu (SHIB) tokens have stabilized after traders took profits on a 25% rise last week.
PayPal USD (PYUSD), a U.S. dollar stablecoin issued in collaboration with Paxos Trust Co., is a significant development in the digital finance landscape, said Jeff Mei, COO of crypto exchange BTSE. Signifying the growing convergence between traditional financial systems and the world of crypto, this news is definitely bullish for the crypto market.
The launch of PYUSD will allow users to transfer tokens between PayPal and supported external digital wallets, use the tokens to pay for goods and services, or convert any of PayPal’s supported cryptocurrencies to and from PYUSD. If the regulators welcome this development, Mei believes we may see more US fintech and payment companies exploring digital currencies and making a shift toward new launches, which could help instill confidence in the concept of stablecoins following last year’s setback with Terra USD.