According to an announcement, the Web3 and crypto firm Transak listed Paypal’s stablecoin, paypal usd (PYUSD), on its platform. This integration allows users to purchase PYUSD using various local payment methods, aiming to simplify the transition to cryptocurrencies. PYUSD Listed on Transak, Aiming to Ease Defi Transition Transak, a Web3 payments infrastructure provider, has added […]
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Despite Crypto Uptick, Paypal’s PYUSD Stays Quiet in the Top Ten Stablecoin Race
In the last day, the global trading volume has hit 3 billion, with stablecoins accounting for an impressive 3 billion of that total. Among the array of stablecoin assets tied to the U.S. dollar, Paypal’s PYUSD has emerged as a top ten player. Yet, despite the ongoing cryptocurrency market upswing, PYUSD has shown minimal activity […]
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Paypal’s PYUSD Stablecoin Central to Investment in Digital Finance Platform Mesh
Paypal Ventures, the venture capital division of Paypal, revealed this week its investment in Mesh, a financial technology startup focused on advancing digital payments. The investment entity emphasized that the capital injection was primarily allocated using the firm’s newly introduced stablecoin, PYUSD.
Mesh Attracts Paypal Ventures Investment, PYUSD Leveraged
This week, Paypal Ventures disclosed its investment in Mesh, a digital currency and fintech startup previously known as Front Finance. Mesh positions itself as a business-centric financial platform, striving to seamlessly blend digital and conventional finance realms. At its core, the platform operates as a comprehensive account aggregation system that boasts 300 connections with various exchanges, wallets, and brokerages.
Mesh’s integrations encompass a wide range of platforms, including Coinbase, Binance, Etoro, Vanguard, Blockchain.com Wallet, Webull, Kraken, Bitcoin.com Wallet, Bitstamp, Kucoin, and several others. Paypal Ventures revealed that their investment in Mesh primarily utilized PYUSD, the firm’s stablecoin offering built on the Ethereum network. While Paypal did not specify the rationale behind using the stablecoin to enhance Mesh’s funding, it acknowledged the potential advantages of the startup’s technology for stablecoin assets.
“As the world of financial services undergoes rapid transformation, we believe that user ownership and portability of assets will become a critical building block of product innovation, with crypto serving as the first beachhead where this is possible,” remarked Amman Bhasin, a partner at Paypal Ventures. Bhasin added:
Mesh’s commitment to these principles, coupled with its innovative technology, makes them a clear leader in this dynamic landscape. We are confident that this investment will fuel Mesh’s growth and contribute significantly to the advancement of embedded finance and native stablecoins.
The Paypal Ventures investment follows Mesh’s Series A funding round, which saw the startup raise million. The investment round was led by Money Forward Inc. and saw participation from Samsung Next, Galaxy, Streamlined Ventures, SNR.VC, Hike VC, Heitner Group, and Arash Ferdowsi, the Co-founder of Dropbox, among others. At the time, the co-founder and CEO of Mesh, Bam Azizi, said “Embedded finance is going to be a trillion market opportunity.”
“We’re thrilled to have the backing of Paypal Ventures as we execute against our vision of becoming the connection layer for a critical mass of crypto platforms and financial service providers,” Azizi said on Monday. “Paypal has an incredible track record of moving the payments industry forward, so it’s no surprise they are at the forefront of stablecoin innovation and share our vision for the future of the industry.”
What do you think about Paypal’s investment in Mesh using PYUSD? Let us know what you think about this subject in the comments section below.
PYUSD’s 30-Day Surge of 72% Vaults Paypal’s Offering Into USD Stablecoin Top Ten
Over the last month, the supply of Paypal’s PYUSD stablecoin has seen a substantial increase, surging by over 72% from 167.83 million to 289.43 million PYUSD. This significant growth has propelled the payment behemoth’s dollar-linked digital currency to become the tenth largest among all USD-anchored stablecoins.
Paypal’s Digital Currency PYUSD Supply Skyrockets
Roughly five months have elapsed since the introduction of Paypal’s Ethereum-based stablecoin, PYUSD. As of the end of August, the total supply of PYUSD stood at 43.3 million, with the top 100 holders possessing 99.99%. However, the quantity of PYUSD has since experienced a dramatic increase, soaring more than 568% to reach the current 289.43 million PYUSD. In the past 30 days alone, from Dec. 10, 2023, to Jan. 10, 2024, the supply of PYUSD has expanded by 72.4%.
Roughly 4,943 distinct addresses are currently holding PYUSD, and the stablecoin has accomplished a cumulative 29,592 onchain transfers. In recent developments, PYUSD has ascended to become the tenth-largest stablecoin by market value, narrowly trailing the market capitalization of pax dollar (USDP). Notably, Paxos, the entity behind USDP, collaborates with Paypal and serves as the primary issuer of the PYUSD stablecoin. Rewind five months, and the scenario was different: Paxos stood as the top holder, with the leading 100 holders controlling 99.99% of PYUSD’s supply.
The landscape has shifted, with the digital currency exchange Crypto.com emerging as the current largest holder of PYUSD. Of the total 289 million tokens, Crypto.com possesses a substantial 112,201,306 PYUSD, representing 38.76% of the entire stablecoin supply. Following close behind, Defiance Capital ranks as the second-largest holder, securing 39,121,862 PYUSD, which accounts for 13.51% of the circulating coins. In third place stands Kraken, holding 31.92 million PYUSD, while the decentralized finance platform Curve Finance occupies the fourth position with a holding of 24.95 million.
Paxos continues to hold a prominent position as the owner of the fifth-largest PYUSD wallet, boasting 24.45 million. While PYUSD ranks as the tenth largest stablecoin, it’s relatively modest when juxtaposed with behemoths like USDC and USDT. Yet, according to bluechip.org’s stablecoin evaluations, PYUSD stands out with an A- rating, surpassing USDC’s B+ and towering over USDT’s D rating. Bluechip suggests that PYUSD’s rating could be elevated from A- to A if Paypal either reveals the details of its reserve custodians and their respective holdings or demonstrates a stable, close peg for a continuous period of 180 days.
PYUSD’s journey in the stablecoin market illustrates a notable evolution in the digital currency space. Its swift expansion and market presence mark a significant trend in the adoption and usage of stablecoins backed by financial incumbents. As PYUSD forges ahead, it presents an interesting case study in the dynamics of stablecoin markets, reflecting the ever-changing landscape of fiat-backed tokens and their growing role in the financial ecosystem.
What do you think about PYUSD’s growth since its launch and the supply increase over the past 30 days? Share your thoughts and opinions about this subject in the comments section below.
PayPal’s PYUSD Report Provides Valuable Insight Into The Stablecoin’s Performance So Far
A new report has shown that the adoption of PayPal’s PYUSD stablecoin has seen less than favorable adoption rates since its inception. The crypto community remains skeptical about employing the new stablecoin for daily crypto payments and has opted for top competitor stablecoins like USDT and USDC.
PYUSD Experiences Sluggish Adoption Rate
Global payments giant PayPal released its transparency report for its stablecoin, PYUSD, and the analysis of the report reveals that the PYUSD stablecoin may not be seeing as much adoption as PayPal and PYUSD stablecoin issuer, Paxos hoped for.
Paypal launched the US dollar-backed stablecoin on August 7 which was designed to increase stablecoin offerings and facilitate the adoption of crypto payments to crypto users as well as consumers and merchants actively utilizing PayPal’s financial platform globally.
However, despite coming from one of the largest players in the payments space, the PYUSD stablecoin remains a relatively small player in the cryptocurrency market, especially when compared to industry heavyweights like Tether (USDT) and USD Coin (USDC).
A Kaiko analyst, Desislava Aubert stated to Decrypt that despite being listed on prominent exchange platforms like Coinbase and Huobi Global, the PYUSD stablecoin’s adoption rate has been progressing slowly, and its daily trade volumes have been fairly low.
“PYUSD was listed on some centralized exchanges in late August, notably Coinbase and Kraken, but its daily trading volume has been volatile and significantly lower than other stablecoins. Overall, this points to sluggish demand,” Aubert stated.
The PayPal USD stablecoin was issued by Paxos Trust Company, a technology company specializing in blockchain in August. Paxos has reported that it holds .3 million in assets supporting the PYUSD stablecoin.
The stablecoin is also reportedly backed with over .5 million in cash deposits. The majority of the coin’s reserves, approximately .8 million have been collateralized with the US Treasuries as reverse purchase agreements.
Currently, PYUSD has a market capitalization of million, suggesting that the stablecoin’s adoption rate has been subpar due to its failure to catch and retain the attention of the crypto community.
Crypto Investors Opt For Top Stablecoins
The decline in acceptance and adoption of the PYUSD may be attributed to the unfamiliarity of the cryptocurrency as a new stablecoin. The stablecoin market is also heavily saturated with well-established cryptocurrencies like USDT, USDC, and others.
Given this, a large number of crypto investors are presently opting for these top stablecoins to facilitate their cryptocurrency transactions. This is further propelled by the fact that these stablecoins have created a considerable reputation for themselves over the years due to their reliability and sustainability.
Presently, USDT has a market capitalization of over billion and USDC has a market cap of billion. At the time of writing, USDT stablecoin’s 24-hour trading volume is over billion as compared to PYUSD stablecoin’s 24-hour trading volume of only .2 million.
Despite PYUSD’s sluggish adoption rate, PayPal remains committed to its cryptocurrency ventures. The payment giant has expanded into different regions globally using its brand name and reliable reputation as an international financial service provider to facilitate crypto adoption and awareness among users in different countries.
Transparency Report Reveals Backing for Paypal’s PYUSD Stablecoin
Paypal’s stablecoin, PYUSD, has been operational for 38 days. The token’s issuer, Paxos, has issued a transparency report related to the coin’s reserves. Much like many of today’s stablecoin industry leaders, PYUSD is supported by cash reserves and U.S. Treasury reverse repurchase agreements.
Paxos Issues Transparency Report on Paypal’s Stablecoin
Paxos, the issuer of this stablecoin and a partner of payments giant Paypal, has made public a transparency report concerning PYUSD’s reserves. According to the update, PYUSD is fully collateralized by U.S. Treasury notes and cash reserves.
As of August 31, 2023, .36 million supports PYUSD, which has a notional value of approximately .50 million. Paxos’ repurchase agreements are characterized by “overnight maturity with reputable financial institutions and overcollateralization with U.S. Treasuries,” as highlighted in the update.
The report states that out of the total, .86 million is collateralized by Treasury notes, and .5 million is collateralized with cash reserves. “As all trades are overcollateralized, the risk of loss is not deemed to be material,” Paxos assures in the transparency report.
Paxos also mentions that it collaborates with BMO Harris Bank, Customers Bank, and State Street Bank. “In order to support overnight and weekend liquidity, Paxos maintains balances in excess of FDIC insurance limits,” the company discloses.
At the time of writing on September 14, 2023, at 9:00 a.m. (ET), approximately 44,376,440.45 PYUSD is in circulation. Roughly 611 addresses hold PYUSD, and it has recorded a total of 2,758 transfers since its launch in August. As of September 14, 2023, the top 100 holders collectively possess 99.97% of all the PYUSD in circulation.
PYUSD is currently ranked 411th out of more than 10,000 crypto assets in terms of market capitalization. The newly launched token has experienced approximately .27 million in 24-hour global trade volume.
What do you think about the recent PYUSD transparency report Paxos released? Share your thoughts and opinions about this subject in the comments section below.
ECB Official Shares Digital Euro Progress, Concerns Over Paypal’s Stablecoin
European Central Bank (ECB) executive board member Fabio Panetta has warned about stablecoins issued by private providers, such as Paypal. He also provided an update on the progress of the digital euro. “At the ECB, our investigation phase is now in its final stage, preparing the ground for the Governing Council to decide whether to move to the next phase of the project,” he said.
ECB Executive Board Member on Digital Euro and Stablecoins
Fabio Panetta, member of the executive board of the European Central Bank (ECB), discussed stablecoins and the digital euro on Monday during his introductory statement at the Committee on Economic and Monetary Affairs of the European Parliament.
Noting that the ECB officially launched the digital euro investigation phase in October 2021, he said, “We have made considerable progress since then.” Panetta added:
At the ECB, our investigation phase is now in its final stage, preparing the ground for the Governing Council to decide whether to move to the next phase of the project.
“Our response to the technological revolution in payments cannot be to stand still,” he emphasized. “In the absence of a digital euro, the emergence of potentially dominant private actors in the digital payments market could have a strong impact on the financial sector.”
Panetta warned: “This is a real possibility, as demonstrated by Paypal’s recent decision to launch its own U.S. dollar-denominated stablecoin for use in digital payments.” The ECB executive board member continued:
Private providers of payment services, including Paypal, have no incentive to limit the take-up of their stablecoins or the range of services they provide. Quite the opposite: their objective is to expand their customer base and gain market share.
He also expressed concerns that private providers may have no incentive to make their payment solutions compatible with those used today. He further cautioned that “while the market entry of big techs or other large payment providers may initially promote innovation, competition could be severely hampered if they attain a monopolistic position, as we have seen in other digital sectors.”
On the contrary, Panetta argued: “This would not be the case with a digital euro. A digital euro would be introduced by public authorities, under a European regulatory framework. It would pay due attention to orderly adjustments in the financial sector while offering payment service providers a platform for innovations with pan-euro area reach.”
The ECB executive board member noted:
Furthermore, unlike the stablecoins issued by big techs, the digital euro would be distributed by banks and other payment service providers, which would maintain their relationship with their customers.
Panetta concluded that the ECB will report on the findings of the investigation phase next month and the Governing Council will then decide whether to move to the next phase of the digital euro project. “If we do move to the next phase, the ECB and the national central banks of all euro area countries will continue to analyze digital euro functionalities and eventually move towards developing and testing technical solutions and business arrangements to be ready to start issuing a digital euro, if and when warranted,” he detailed.
What do you think about the statements by ECB executive board member Fabio Panetta regarding the digital euro and stablecoins issued by companies like Paypal? Let us know in the comments section below.
Coinbase Debuts Paypal’s PYUSD Stablecoin; Trading to Roll Out in Phases Pending Liquidity
Coinbase has listed Paypal’s PYUSD stablecoin, following an announcement of its support for the digital asset just a day earlier. Should liquidity requirements be satisfied, the exchange plans to introduce trading pairs for the asset in stages.
Coinbase Adds PYUSD Stablecoin
Coinbase, the prominent cryptocurrency exchange headquartered in San Francisco, has incorporated Paypal’s dollar-tied token, PYUSD, into its offerings. The firm broke the news on Wednesday, mentioning that trading would commence at 9 a.m. PT on Thursday, provided “liquidity conditions were met.”
“Once sufficient supply of this asset is established trading on our PYUSD-USD trading pairs will launch in phases,” elaborated Coinbase. “Support for PYUSD may be restricted in some supported jurisdictions.” The exchange also emphasized that PYUSD operates as an ERC20 token on the Ethereum network, cautioning users against transferring the asset through alternate networks to avoid potential losses.
According to a recent Bitcoin.com News report, PYUSD’s supply experienced a spike leaping from 26.9 million to 43.3 million PYUSD. However, despite the recent addition to Coinbase, PYUSD’s activity remains limited, recording merely 1,587 transfers and boasting 388 holders. As of 12:30 p.m. ET on August 31, the exchange’s web portal says PYUSD can be acquired via Coinbase.
Our report on PYUSD highlighted that other digital currency platforms, such as Crypto.com, Uniswap, Gate.io, Bitmart, and Bybit, also support the token. On Thursday specifically, a labeled Coinbase wallet possesses around 1,005,467 PYUSD, ranking it as the fifth-largest PYUSD wallet as of August 31. This means the Coinbase wallet accounts for approximately 2.3221% of the total supply of Paypal’s stablecoin token.
What do you think about Coinbase listing Paypal’s PYUSD? Share your thoughts and opinions about this subject in the comments section below.
PayPal’s PYUSD Fails To Capture Interest: 90% Of Supply Remains In Paxos’ Wallet
Paypal’s Ethereum-based stablecoin PYUSD has failed to capture crypto investors’ interest. According to data from Nansen, 90% of the stablecoin’s total supply still remains with its issuer Paxos’ wallet.
Paypal’s PYUSD Adoption Setback
The payment giant Paypal’s recently launched stablecoin PYUSD continues to struggle with adoption and has failed to gain traction since its official launch on August 7, 2023.
Despite PayPal having over 350 million users worldwide, on-chain data from Nansen has shown that only a small percentage of its user base is currently using and holding the PYUSD in self-custody wallets.
“On the surface there’s a lack of demand from crypto users for PYUSD when other alternatives exist,” said Nansen in a report.
However, it is believed that lack of enthusiasm might involve the stablecoin’s lack of utility and not being able to earn interest on the stablecoin, as highlighted by an X (formerly Twitter) user in a post on August 26, 2023.
Problem:
Nobody wants to mint $pyUSD because there’s not much to do with it and it doesn’t pay any interest.
Solution:
– $pyUSD – $crvUSD pool
– $CRV gauge approval from Curve DAO@PayPal@CurveFinance $PYPL #DeFi https://t.co/jVr7sN36KH pic.twitter.com/NUdsKmfY8F
— DefiMoon
(@DefiMoon) August 26, 2023
The stablecoin’s holdings on crypto exchange wallets are also low, accounting for just about 7% of the stablecoin’s total supply. This percentage takes into account the balances on centralized exchanges such as Kraken, Crypto.com, and Gate.io.
Despite the high expectations in the crypto industry following the release of the stablecoin that it would actually promote wider adoption and introduce cryptocurrencies to the masses for the first time, the stablecoin has failed to live up to expectations and smart money investors seem perfectly comfortable to circumvent the stablecoin.
The largest holder of the stablecoin holds less than ,000 worth of PYUSD after the holder sold about 3 meme coins to purchase the stablecoin. Excluding contracts or exchanges, not more than 10 holders have a balance surpassing ,000.
According to Coinmarketcap, PYUSD has a total supply of 43 million PYUSD tokens and pools in decentralized exchanges like Uniswap’s PYUSD/USDC and PYUSD/wETH accounts to only 50,000 PYUSD tokens respectively.
The PYUSD tokens have been criticized for being overly centralized, as the majority of its total supply turns out to be stored on centralized exchanges, resulting in difficulty in growing its circulation.
Despite such a high total supply, the collective total number of the stablecoin’s holders according to Etherscan is merely 324 at the time of this writing.
Expectations On Ethereum For The Stablecoin
According to JP Morgan analyst Nikolaos Panigirtzoglou, following the first week of Paypal’s stablecoin launch, Ethereum enjoyed no benefit from PYUSD when looking at things such as increased network activity, increased Total Value Locked (TVL), and enhancing Ethereum’s network utility as a stablecoin/DeFi platform.
Crypto experts and enthusiasts have also criticized PayPal for choosing Ethereum for its stablecoin due to the blockchain’s high transaction fees.
Co-founder of Sei Network Jayendra Jog said, “The gas fees of using PYUSD will be ridiculous, which will disincentivize its usage.”
He further added, “To help make the user experience better, PayPal will either need to subsidize transaction costs or will need to help support PYUSD on other networks with cheaper gas fees.”
Bybit Announces ‘Imminent’ Listing of Paypal’s PYUSD Stablecoin
According to the crypto exchange Bybit, the trading platform plans to list Paypal’s stablecoin soon. Amid Bybit’s announcement, Paypal’s PYUSD token has seen little movement as most of the supply is held by the contract and the Paxos Treasury.
Dubai-Based Bybit Prepares to List Paypal’s New Stablecoin, PYUSD
On Thursday, August 17, 2023, the Dubai-based digital currency exchange Bybit said it will list Paypal’s new stablecoin, PYUSD. Bybit, a cryptocurrency exchange co-founded in March 2018 by Ben Zhou, is one of the largest exchanges to announce it will list the PYUSD token to date.
“We’ll List PYUSD imminently,” Zhou explained in a statement sent to Bitcoin.com News. “We are truly impressed by Paypal’s introduction of the USD stablecoin (PYUSD) and its vision for the future of payments.”
Zhou added:
This launch is another step on the path toward reforming our antiquated global payments system. Indeed, the underlying blockchain technology is characterized by cost-efficiency, rapid settlement times, and global reach, which presents an opportunity to not only enhance the user experience but also make marked efficiency gains in the transfer of capital potentially saving billions of dollars per year.
Ten days ago, payments giant Paypal announced the PYUSD launch, but the token had been relatively inactive. However, since Bybit’s announcement, Bybit’s hot wallet shows interaction with the PYUSD contract. Currently, the contract and the Paxos Treasury hold about 99% of the total supply, with the remainder used in test transactions. As of 9:40 a.m. Eastern Time on Aug. 17, 2023, there are 32 holders and a total of 216 PYUSD transfers.
“At Bybit, we recognize the strategic importance of this initiative and wholeheartedly support Paypal’s efforts to bridge the gap between traditional and digital currencies and will list PYUSD for spot trading imminently,” Zhou stated on Thursday. The Bybit co-founder further noted that Paypal’s partnership with Paxos Trust Company “underscores the rigorous regulatory approach and commitment to compliance, which are paramount in this evolving landscape.”
What do you think about Bybit announcing that it will list PYUSD? Share your thoughts and opinions about this subject in the comments section below.