After launching a new stablecoin last month, PayPal revealed on Wednesday that PayPal USD (PYUSD) is now available to Venmo users.
Initially available to ‘selected users’, access will be expanded to all Venmo users in the coming weeks, according to the company’s announcement.
Venmo, the mobile payment app owned by PayPal, will allow users to buy and send PYUSD to other Venmo and PayPal wallet users.
PayPal is introducing free stablecoin transfers between PayPal and Venmo users, which favors wallet interoperability.
– Individuals using compatible external wallets and merchants accepting payments in PYUSD will also be able to receive transfers from Venmo users. Blockchain network fees apply – PayPal added.
PYUSD is an Ethereum-based stablecoin pegged to the US dollar, which PayPal launched in August.
Users can currently purchase PYUSD on various exchanges, including Crypto.com, Coinbase, and Kraken.
Stablecoins are digital assets tied to stable values, such as the US dollar. PayPal’s stablecoin is backed by a combination of US dollar deposits and short-term government bonds.
PYUSD’s market capitalization currently stands at $44.3 million, far behind giants like Tether (USDT) and USD Coin (USDC). Paxos Trust holds $45.3 million in assets backing the stablecoin, according to a recent report.
PayPal users can also buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the platform.
