PayPal announced on September 21 that its stablecoin, PYUSD, designed for payments and transfers, is now accessible via Venmo. The rollout began partially on the same day, with full availability expected in the coming weeks. Venmo users can purchase PYUSD through PayPal, Venmo, or compatible external wallets and send it to others.
Additionally, users with compatible external wallets and merchants accepting PYUSD payments will be able to receive transfers from Venmo users. However, PayPal clarified that blockchain network fees will apply for transactions.
Key Features of PYUSD
- Issuer: Paxos Trust Company
- Backing: USD deposits, short-term U.S. Treasuries, and cash equivalents
- Initial Circulation: ~24.9 million PYUSD (per Paxos)
- Current Supply: $44.376 million (per Etherscan)
Ecosystem Adoption
PYUSD has rapidly integrated into the crypto ecosystem, appearing on:
- Exchanges: Crypto.com, Bitstamp, Coinbase, Kraken
- Wallets: MetaMask, Ledger, Phantom
- Custodians: Fireblocks, Copper, Paxos, Fordefi
- Payment Services: BitPay
- DeFi Applications: Multiple leading platforms
The stablecoin has also been added to the NYDFS Greenlist, signaling regulatory approval in New York.
Understanding Stablecoins
Stablecoins are cryptocurrencies pegged to external assets (e.g., USD). Their adoption remains contentious:
- Meta abandoned its stablecoin Diem in 2022 due to regulatory pushback.
- PayPal temporarily paused stablecoin development earlier this year amid increased crypto scrutiny (per Bloomberg).
PayPal’s Crypto Journey
- 2020: Launched crypto services for U.S. users (buy/sell/hold).
- 2021: Introduced "Checkout with Crypto" for online merchants.
- 2022: Enabled transfers to external wallets/exchanges.
👉 Explore PYUSD's latest integrations
FAQ
1. How do I buy PYUSD on Venmo?
Navigate to the "Crypto" section in Venmo, select PYUSD, and purchase via linked payment methods.
2. Are there fees for PYUSD transfers?
Yes, blockchain network fees apply for all transactions.
3. Which wallets support PYUSD?
MetaMask, Ledger, and Phantom are among the compatible options.
👉 Learn more about stablecoin regulations
4. Can merchants receive PYUSD?
Yes, if they’ve enabled PYUSD payments.
5. Is PYUSD available globally?
Currently, availability is limited to select regions; check PayPal’s updates for expansion.