PayPal is expanding its money transfer services for users in the United States, allowing them to send funds to family and friends abroad using its native stablecoin, PayPal USD (PYUSD). The service, powered by PayPal’s Xoom, enables users to convert PYUSD to U.S. dollars and transfer money to over 160 countries without any transaction fees. Users can send funds to a recipient’s bank account, mobile wallet address, or a financial institution for pickup. However, residents of Hawaii are unable to use this service due to state laws prohibiting PayPal from holding cryptocurrencies. The issuance and custody of PYUSD are managed by Paxos Trust Company in New York. Since its launch in August, PYUSD has seen close to $200 million in issuance, significantly lower than the market caps of USD Coin and Tether. PayPal aims to provide a stable value for PYUSD to build user confidence and ensure its usability for commerce and payments. In addition, Ripple and Nick van Eck are also entering the U.S. dollar-backed stablecoin market, demonstrating the growing interest in this type of digital asset.
Cross-Border Transfers Now Enable Conversion of PYUSD Stablecoin to USD via PayPal