Paypal has made a strategic move by selecting Crypto.com as its “preferred exchange” for the PYUSD stablecoin, recently launched in collaboration with blockchain firm Paxos. This partnership with the cryptocurrency trading platform aims to bolster the PYUSD, a U.S. dollar-pegged cryptocurrency that is already actively listed and benefits from deep liquidity on Crypto.com.
The introduction of PYUSD by Paypal in early August marked the company’s intention to incorporate it into its payment infrastructure gradually. This stablecoin is issued by Paxos Trust Company, based in New York, and operates on the Ethereum blockchain. It is reportedly redeemable at a 1:1 ratio for U.S. dollars and is backed by dollar deposits, short-term Treasury securities, and similar assets.
Joe Anzures, Senior Vice President and Head of Payment Partnerships at Crypto.com, expressed excitement about the partnership, highlighting Paypal’s role as a pioneer in digital commerce and Paxos’ position as a leading stablecoin issuer. He emphasized the collaboration’s potential to advance the cryptocurrency landscape, stating that it will connect Crypto.com’s vast user base of over 80 million users to the latest crypto innovations while also supporting Paypal’s global network of consumers and merchants.
This partnership extends the existing integration between the financial giant and the cryptocurrency exchange. Crypto.com already enables users of its Visa Card to top up their cards with Paypal funds. Additionally, PYUSD deposits are readily available to retail users on the Crypto.com platform through its app, with plans to introduce trading features in the near future.
PYUSD represents just one facet of Paypal’s foray into the cryptocurrency realm. In the past year, the payment processor allowed users to send and receive popular cryptocurrencies like Bitcoin and Ethereum. Reports have also emerged about Paypal filing a patent application for a non-fungible token (NFT) marketplace this year. Furthermore, Paypal recently unveiled plans to provide on- and off-ramps to facilitate crypto payments for Web3 platforms, including digital wallets and decentralized applications.