PayPal’s stablecoin, PYUSD, has been integrated into Venmo, offering a select group of users the ability to transact using the digital currency. The feature will be rolled out to a wider audience in the weeks ahead. This move enables Venmo account holders to buy PYUSD with their existing balances and send it to other Venmo, or compatible external wallet users.
The stablecoin, issued by Paxos Trust Company, is backed by U.S. dollar deposits, short-term U.S. Treasuries, and other cash-like assets. With an initial capital injection of around $24.9 million from Paxos, PYUSD’s current circulation has swelled to an impressive $44.376 million, according to Etherscan data.
This Venmo integration is just one part of PYUSD’s broader adoption strategy. The stablecoin is listed on major cryptocurrency exchanges such as Crypto.com, Bitstamp, Coinbase, and Kraken. It has gained support from top-tier wallet providers like MetaMask, Ledger, and Phantom and custodial services like Fireblocks, Copper, Paxos, and Fordefi. Payment platforms like Bitpay and various decentralized apps have also incorporated PYUSD into their ecosystems.
The New York State Department of Financial Services has officially approved PYUSD, adding an extra layer of trust to the stablecoin’s reputation.
This move comes as stablecoins face increased scrutiny and discussion. While Meta had to shelve its stablecoin project, Diem, due to regulatory hurdles, PayPal has been steadily expanding its crypto offerings. The company first ventured into crypto in 2020, becoming the first major online payment service to offer cryptocurrency-related services to U.S. customers. Last year, PayPal launched “Checkout with Crypto,” allowing users to make online purchases with Bitcoin and also enabled Bitcoin transfers to other exchanges.