Cross-border transfers now support USD conversions for PayPal’s PYUSD stablecoin

PayPal has unveiled a new service that allows users in the United States (excluding Hawaii) to fund international money transfers using its native stablecoin, PayPal USD (PYUSD). The service, powered by PayPal’s Xoom, enables users to send money abroad to over 160 countries without incurring any Xoom transaction fees. By converting USD from PYUSD, users now have a convenient and reliable way to send money internationally. The funds can be sent to a recipient’s bank account, mobile wallet address, or financial institution for pickup. Transactions in currencies other than USD will undergo currency conversion, which includes a spread. The issuance and custody of PYUSD are handled by Paxos Trust Company in New York. Since its launch in August, approximately $200 million worth of PYUSD has been issued, a modest figure compared to the market caps of other stablecoins such as USD Coin (USDC) and Tether (USDT). PayPal aims to establish PYUSD as a stable value that inspires user confidence and serves as a practical medium for commerce and payments. In a related development, Ripple has announced its plan to launch its own U.S. dollar-backed stablecoin, aiming to compete with the $150 billion stablecoin market. Additionally, Nick van Eck, the son of investment management expert Jan van Eck, is preparing to launch a new stablecoin backed by the U.S. dollar after completing a $12 million funding round.