PayPal, the global payment giant, has made a significant move in the cryptocurrency space by introducing its proprietary stablecoin, PYUSD, to Venmo.
This development allows Venmo users to buy, send, and receive PayPal’s new stablecoin, PayPal USD, directly through the app.
The launch of PYUSD on Venmo is a phased one, starting with a select group of Venmo users. However, the company has plans to roll out this feature to all its users in the coming weeks. This move is seen as a strategic step to enhance the utility of PYUSD and make it more accessible to a broader audience.
One of the key features highlighted by PayPal is the ability for users to send PYUSD between PayPal and Venmo seamlessly. This transfer is touted to be quick and free, although users should be aware of the blockchain network fees associated with the ERC20 token.
PYUSD, being an ERC20 token, incurs fees related to the Ethereumgas market and block space. For instance, data from etherscan.io indicated that as of September 20, 2023, 2:00 PM Eastern Time, the cost to transfer an ERC20 token ranged between $2.65 to $2.91 per transaction.
Furthermore, PYUSD’s utility is not limited to just PayPal and Venmo. The stablecoin has gained acceptance on various platforms, including but not limited to Coinbase, Crypto.com, Bitstamp, Kraken, MetaMask, Ledger, Phantom, Bitpay, and Fireblocks.
PayPal’s venture into the stablecoin market has also received regulatory backing. The company emphasized its recent approval from the New York State Department of Financial Services. This approval came after PYUSD’s transparency report was released, detailing the reserves backing the stablecoin, which includes cash and U.S. Treasury reverse repurchase agreements.
As of September 20, there were approximately 44.37 million PYUSD coins in circulation. The stablecoin has garnered interest from various entities, with 698 distinct addresses holding PYUSD. Since its inception, these wallets have conducted a total of 3,354 transactions. A noteworthy point is that the top 100 holders possess 99.96% of the PYUSD supply, amounting to 44,358,474.05 PYUSD tokens.