PayPal enables the conversion of cross border transfers made with the PYUSD stablecoin into US dollars
With the conversion of U.S. dollars from its native stablecoin PayPal USD (PYUSD), PayPal will enable all users in the United States who are not residents of Hawaii to pay money transactions to relatives and friends living overseas.
The service, enabled by PayPal’s Xoom, is said to be able to finance money transfers via PYUSD to over 160 countries without incurring any Xoom transaction fees, according to the statement made on April 4. “Xoom now offers a simple and dependable solution for U.S. consumers to send money overseas utilising PYUSD as a funding source by offering the ability to finance cross-border money transfers using USD converted from PYUSD,” the business noted, adding:
“When this option is selected, Xoom will convert the PYUSD in a U.S. user’s PayPal Cryptocurrency Hub to USD currency with no crypto sale fee, and recipients will receive funds in the fiat currency selected by the sender.”
Money may be transferred internationally via the service to a recipient’s bank account, mobile wallet address, or financial institution for collection. Any transaction not denominated in US dollars will incur a spread throughout the currency conversion process. All users in the United States are eligible to utilize the service, with the exception of Hawaii, where state law forbids using PayPal to retain cryptocurrency.
The Paxos Trust Company in New York is in charge of issuing and holding PayPal USD. Nearly $200 million worth of PYUSD have been released since its August introduction; this is a significant amount less than Tether’s $110 billion and USD Coin’s $32.9 billion market capitalization of USDC $1.00.
The objectives of PayPal’s Digital Currency Group, according to senior vice president Jose Fernandez da Ponte, are to establish “a stable value to maximize user confidence and ensure it had utility for commerce and payments.”
On the same day, Ripple declared it will enter the $150 billion stablecoin market by launching its own US dollar backed stablecoin. Similarly, Nick van Eck, the son of the legendary Jan van Eck in investment management, is scheduled to introduce a new stablecoin backed by the US dollar on April 3rd, following the completion of a $12 million fundraising round.
