PayPal, which recently launched its stablecoin, just announced they’re rolling out a new feature that will allow users to seamlessly convert PYUSD and other crypto assets. The payments giant just launched a Cryptocurrency Hub service that will allow for the sale and purchase of crypto and other functionalities through PayPal and PYUSD.
Introducing The Cryptocurrency Hub
PayPal has been exploring the possibility of expanding its cryptocurrency operations in the hopes of gaining a foothold in the rapidly expanding sector of cryptocurrencies as a form of payment.
PYUSD, the company’s very own dollar-backed stablecoin, was released recently, making the company the first big US financial institution to launch a stablecoin. PYUSD, which lives on the Ethereum blockchain, is issued by Paxos and is 100% backed by U.S. dollar deposits like other stablecoins.
Following the PYUSD launch, the company has updated its terms and conditions to introduce Cryptocurrencies Hub. According to the terms and conditions, the cryptocurrency hub feature will allow users to hold and interact with Bitcoin and other cryptocurrencies in their PayPal account.
Users will be able to buy and sell crypto, and the hub also looks to simplify the conversion between PYUSD and other assets and make payments through PayPal after selling cryptocurrencies easier.
PYPL stock price hovers at $61 | Source: PayPal Holdings, Inc. on Tradingview.com
The cryptocurrency hub will be directly linked to the user’s PayPal account and will show users the amount of each type of crypto asset they own and the US dollar equivalent value of those crypto assets. However, not all PayPal users will be able to access this new crypto feature right away. According to the update, users with good records with their balance accounts have a higher priority.
“You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub at this time,” the terms and conditions read.
PayPal And PYUSD
For PayPal, this is a big move into the world of digital assets and blockchain. They’re betting mainstream customers will adopt stablecoins as a legitimate way to make payments. If it catches on, PYUSD could transform the Ethereum blockchain and how many traditional investors relate to cryptocurrencies.
Like every other stablecoin, PYUSD will be available on crypto exchanges. Crypto exchange Huobi has already announced that it will be the first to support PYUSD, as it launches the PYUSD/USDT trading pair.
However, due to the popularity of PayPal, the launch of PYUSD seems to have raised concerns from some investors and regulators. According to Patrick T. McHenry, Chair of the House Financial Services Committee, the launch of PYUSD shows the need to pass clear regulations concerning the regulation of stablecoins.
