TL;DR
- PayPal has launched its stablecoin, PYUSD, on MoonPay, allowing transactions with multiple payment methods in most countries, except Canada.
- This integration results from a strategic agreement made in May 2024, enabling MoonPay users to buy and sell cryptocurrencies using their PayPal accounts.
- PYUSD, backed 100% by U.S. dollars and equivalent assets, represents a key advancement in cryptocurrency adoption.
PayPal has announced that its stablecoin, PayPal USD (PYUSD), is now available for purchase on the MoonPay platform, allowing users to conduct transactions using various payment methods in all supported countries, except Canada.
The integration comes as a result of a strategic agreement between both companies announced in May 2024. It will allow MoonPay users to buy and sell cryptocurrencies using their PayPal accounts.
PYUSD is a stablecoin designed to be redeemable for U.S. dollars and is reportedly backed 100% by dollar deposits, short-term Treasury bonds, and other cash equivalents. The stablecoin represents one of the first launches in this sector by a major financial services company.
PYUSD, the new stablecoin from PayPal, is now on MoonPay!
💰 PYUSD on Ethereum (today) and Solana (soon)
🎉 On the only on-ramp that lets you buy crypto using your PayPal account
🌎 Available in 150+ countries
Welcome to MoonPay! https://t.co/PE4c8a6tvK pic.twitter.com/6zF35dtqCp
— MoonPay 🟣 (@moonpay) October 2, 2024
This is a leap toward cryptocurrency adoption in the digital payments market. PayPal has shown a marked interest in capturing market share among significant fintech companies operating in the digital asset industry.
PayPal USD (PYUSD) Faces Market Capitalization Loss
With the expansion of its offering as the ultimate goal, the company has also planned to enable its business customers in the United States to buy, sell, hold, and transfer cryptocurrencies. This is a strategy clearly oriented toward strengthening its presence in the digital asset market. However, the market capitalization of PYUSD has experienced a significant decline since surpassing $1 billion in August. Its now estimated at around $705 million.
One notable aspect of the expansion of PYUSD has been its availability on the Solana network. Where its supply managed to surpass that of the competing blockchain Ethereum. However, in recent weeks, the supply of PYUSD on Solana has fallen below that of Ethereum.
The availability of PYUSD on MoonPay could attract more users to the crypto ecosystem and facilitate the onboarding of new customers. A goal that PayPal has been actively pursuing. Additionally, there has been a growing interest from other fintechs, such as Robinhood and Revolut, in developing their own stablecoins.
