Venmo, the peer-to-peer payment app, is set to offer PayPal USD (PYUSD), an ERC-20 stablecoin, in the coming weeks.
This move integrates PYUSD into the Venmo platform, creating a seamless channel for transferring assets between millions of users.
According to a press release from PayPal, Venmo users will soon be able to “purchase PYUSD and send it to friends and family on PayPal, Venmo, and compatible external wallets.”
The integration of PYUSD into Venmo is being promoted by PayPal as “the first example of a stablecoin enabling wallet interoperability at scale with no cost.”
PayPal highlighted the efficiency and cost-effectiveness of this system, stating, “Transfers between PayPal and Venmo users are fast and free, connecting two wallets with millions of users each.” This statement signifies an important step towards making digital transactions more streamlined and less costly.
PayPal had initially launched PYUSD on Aug. 7 in collaboration with crypto infrastructure firm Paxos. The stablecoin is backed by U.S. dollar deposits, short-term Treasuries, and other cash equivalents, that helps ensure its stability. Almost a month later, on Sept. 11, PayPal added a feature that allowed users to convert digital currencies into U.S. fiat.
The introduction of PYUSD into Venmo continues PayPal’s ongoing efforts to expand into the cryptocurrency market. Venmo itself had begun offering crypto purchases in 2021, making PYUSD yet another digital asset that its users can transact with. According to PayPal, the mission behind PYUSD is “deploying a safe, regulated stablecoin at scale both for the web3 ecosystem and for everyday payments.”
The stablecoin is not only available on PayPal and Venmo, but has also gained significant adoption across various crypto platforms.
The press release notes,
In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken; leading wallets like MetaMask, Ledger and Phantom; custodians like Fireblocks, Copper, Paxos and Fordefi; crypto payment service providers like Bitpay; and already supported by some of the most widely used decentralized applications,
Furthermore, PYUSD has been greenlisted by the New York State Department of Financial Services, making it easier for licensed entities in New York to support the stablecoin. As the cryptocurrency ecosystem continues to evolve, the introduction of PYUSD to Venmo marks an exciting chapter in the quest for more efficient and cost-effective digital transactions.