PayPal Launches Dollar-Backed Stablecoin, Boosting Shares

PayPal has launched a U.S. dollar stablecoin, becoming the first major financial technology firm to embrace digital currencies for payments and transfers. Reuters reports: PayPal's announcement, which lifted its shares 2.66% on Monday, reflects a show of confidence in the troubled cryptocurrency industry that has over the last 12 months grappled with regulatory headwinds that were exacerbated by a string of high-profile collapses. "PayPal isn't quite as polarizing as Facebook, but it's a high-profile name that will surely get attention on Capitol Hill, and from the [Federal Reserve] and [Securities and Exchange Commission]," said Ian Katz, managing director of Capital Alpha Partners, in a note.

PayPal's stablecoin, dubbed PayPal USD, is backed by U.S. dollar deposits and short-term U.S Treasuries, and will be issued by Paxos Trust Co. It will gradually be available to PayPal customers in the United States. The token can be redeemed for U.S. dollars at any time, and can also be used to buy and sell the other cryptocurrencies PayPal offers on its platform, including bitcoin. "PYUSD is the first of its kind, representing the next phase of U.S. dollars on the blockchain," Paxos posted on messaging platform X, formerly known as Twitter. "This is not just a milestone moment for Paxos & PayPal, but for the entire financial industry."

sounds great

[OrangeTide]

Let me use this new currency that releases this financial institution from all liability and puts it squarely on my own shoulders.

None for Me, Thanks!!!

[crunchy_one]

An opportunity to convert actual money to tokens, how can I possibly resist?

Just watch me.

Re:

[quonset]

An opportunity to convert actual money to tokens, how can I possibly resist?

Just watch me.

Clearly you've never played blackjack at a casino or played at certain arcades.

Re:

[taustin]

Dunno about crunchy_one, but I never have. I understood the math of "house advantage" before I was old enough to gamble.

Re: None for Me, Thanks!!!

[Faux_Pseudo]

When gambling you are taking a risk that you will lose or gain something. This isn't that. This is a promise that the tokens will be worth the same face value of greenbacks that you traded them for, minus any fees. It's literally just a place holder token with no chance to gamble.

Re: None for Me, Thanks!!!

[brickhouse98]

I'd like a proponent to tell me just one reason why I'd want this token instead of just real dollars.

Sure. Confidence.

[The Evil Atheist]

which lifted its shares 2.66% on Monday, reflects a show of confidence in the troubled cryptocurrency industry

No it fucking doesn't.

This is just turning finance into astrology (different from financial astrology). You're just trying to read the most positive take on it.

All this actually reflects is the amount of desperation investors have.

+1

[christoban]

Since some Ponzi scheme lover is downvoting every post that doesn't praise his favorite scam, and I have no mod points!

Re:

[The Evil Atheist]

Probably SuperKendall. He was heavily into crypto before everything collapsed.

Re: +1

[drinkypoo]

Probably just the owners of this site, who are crypto pushers. Although I could believe that stupor ken doll is one of them...

Who keeps control?

[laughableideasintech]

No mention of the nature of custody. Is this something you keep on their website or do people have their own wallets? I wouldn't be surprised if it isn't the former. Paypal is the worst. They like to randomly confiscate money. Easy to pass on this "token".

Re:

[dynamo]

Who cares about custody when the whole currency is controlled by a single central corporate for-profit entity? Do you think they'll voluntarily give up control over the node farm controlling the blockchain? No, they'll pretend it's the same thing when it's centralized, just like so many others have done, and the currency will crash. The whole idea of a pegged stablecoin is ridiculous as we've seen in multiple corporate failures resulting directly from bad attempts to profit from not keeping the actual amoun

Re:

[laughableideasintech]

Well self-custody would imply that they don't control it or otherwise it isn't in your custody. You're right about stablecoins. I'm not sure it is ridiculous but it is a hard problem to solve. I worked on the first stablecoin pegging project and it is a bit comical how such a beast winded up being exploited. The tokens don't have to be backed by actual dollars but they need to be backed by something.

don't know where else to post this - PayPal sux

[Anonymouse Cowtard]

I have a 23 year old PayPal account. Originally created for some eBay and Amazon purchases. Sat latent for years except for some occasional use (sending payments, not receiving) until .... I received payment from an online service. I sold some stock soundtracks for background music. It was less than $10. Can I have it? No. They've locked my account until I send them some id and biometrics. Well, enjoy the $10 you bunch of cunts. I imagine I'm but one of very many. Imagine if I robbed an online service. Or you. Or lots of us at once, since they do this to lots of us at once. Just a few cents here and there, but all day everyday. Everywhere. Anyway, back to the trouble at hand...

Re:

[The Evil Atheist]

PayPal sucks.

But what's the actual problem, in your scenario? There are regulations and punishments around the transfer of money - especially receiving money - when related to business transactions. Of course they'll want to confirm your identity.

Producing stuff which you then sell makes you a sole trader, at the very least. PayPal doesn't want to take on your legal liability.

Re:

[matthiashj]

Yes, because Paypal is regulated and it's their responsibility to make sure money isn't laundered. One big part of that is KYC.

Yet another dupelicate

[RonVNX]

Could maybe the two of you who post here possibly coordinate so that you stop posting the same news twice constantly?

Paypal is poison.

[bumblebees]

And for sure they will retain the possibility to take back your coins or reverse any transaction you ever did for no reason forever.

Still a bad idea

[CEC-P]

Almost all "stable" coins have been investment or rug pull scams by the people making them, even the largest! So Paypal wouldn't rip you off, right?
Don't answer that but we'll pretend you said "yes"
Okay, so crypto that's tied directly to the value of a dollar. So it can inflate with it? So it can get devalued? So it can get caught up in a USD currency crash if it happens? So...the opposite of the point of almost every other crypto? There has never been an upside to it other than money laundering and crim

where's all the fanboyz?

[sdinfoserv]

Reading through these comments is hysterical. 3 & 4 years ago I used to post on this site my beliefs on how awful crypto was. My comments were continually down voted to troll status... So many fanboyz argued with me how great crypto was. Where are you now? I win... bwa hahahahahaha!

FT Headline:....Boosting shares

[bkmoore]

PayPal's announcement, which lifted its shares 2.66% on Monday, reflects a show of confidence in the troubled cryptocurrency industry that has over the last 12 months grappled with regulatory headwinds that were exacerbated by a string of high-profile collapses.

So this is a stock pump and dump scheme. PayPal is so 1999, I guess they're trying to be relevant again.