PayPal is expanding its money transfer services for users in the United States, allowing them to send funds to friends and family abroad using its stablecoin, PayPal USD (PYUSD). The service, powered by PayPal’s Xoom, enables users to convert their PYUSD into US dollars and send them to over 160 countries without any transaction fees. Recipients can receive the funds in their bank accounts, mobile wallets, or through a financial institution. However, users in Hawaii are not able to access this service due to state regulations prohibiting the holding of cryptocurrencies with PayPal. The issuance and custody of PYUSD are managed by Paxos Trust Company in New York. Since its launch in August, around $200 million worth of PYUSD has been issued, compared to the market caps of other stablecoins like USD Coin (USDC) and Tether (USDT). PayPal aims to provide a stable value for PYUSD to increase user confidence and ensure its usefulness for commerce and payments. Ripple also announced its own U.S. dollar-backed stablecoin, while Nick van Eck is launching a new stablecoin after securing $12 million in funding.
Cross-border transfers now facilitate USD conversions for PayPal's PYUSD stablecoin
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