Kofi Mensah This Wednesday, Paypal, the prominent payment service provider, revealed that its dollar-backed stablecoin, PYUSD, is now accessible via its Venmo platform. Paypal elaborated that the initial rollout will be selective, available to a specific group of Venmo users, with a full-scale launch for all users slated for the near future.
Venmo Introduces Paypal’s Proprietary Stablecoin PYUSD
Paypal has made it known that Venmo customers can now utilize the company’s own stablecoin, PYUSD, for various transactions. The initial introduction is targeted at a subset of Venmo users, but it is anticipated that the full range of Venmo customers will soon have the ability to buy PYUSD and transfer it among Paypal and Venmo users, as well as to compatible third-party wallets.
It should be noted that while transfers within the Paypal and Venmo ecosystem are free and expedient, they are subject to blockchain network fees because PYUSD is an ERC20 token. ERC20 tokens operate on the Ethereum blockchain and incur transaction costs determined by Ethereum’s fee market and available block space.
For context, data from etherscan.io as of September 20, 2023, at 2:00 p.m. (ET) showed that the fee for transferring an ERC20 token ranged from $2.65 to $2.91 per transaction. Additionally, Paypal’s announcement also confirmed that PYUSD has been integrated into various other platforms, such as Coinbase, Crypto.com, Bitstamp, Kraken, MetaMask, Ledger, Phantom, Bitpay, and Fireblocks, among others.
Paypal also underscored its recent authorization by the New York State Department of Financial Services. This comes shortly after the release of PYUSD’s inaugural transparency report, which disclosed that its reserves are backed by cash and U.S. Treasury reverse repurchase agreements.
As of the most recent data available on September 20, approximately 44.37 million PYUSD tokens are in active circulation. They are held by a total of 698 unique wallet addresses, which have completed 3,354 transactions since the stablecoin’s inception. Remarkably, the top 100 wallet addresses account for nearly the entirety of the PYUSD supply, holding 44,358,474.05 PYUSD tokens, which equates to 99.96% of the total supply.
We invite you to share your perspectives and insights on Venmo’s adoption of PYUSD in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Venmo Incorporates Paypal’s Dollar-Backed Stablecoin PYUSD
What is the main development discussed in the article?
The primary development discussed in the article is the integration of Paypal’s dollar-backed stablecoin, PYUSD, into its payment platform Venmo.
Who are the target users for PYUSD on Venmo initially?
Initially, PYUSD will be available to a select group of Venmo users, with a broader rollout planned for all users in the near future.
What fees are associated with PYUSD transactions?
While transfers within the Paypal and Venmo ecosystem are free, PYUSD transactions are subject to blockchain network fees since the stablecoin is an ERC20 token operating on the Ethereum blockchain. As of September 20, 2023, the transaction fees ranged from $2.65 to $2.91 per transaction.
What platforms, apart from Venmo, support PYUSD?
PYUSD is also supported by various other platforms, including but not limited to Coinbase, Crypto.com, Bitstamp, Kraken, MetaMask, Ledger, Phantom, Bitpay, and Fireblocks.
What kind of financial backing does PYUSD have?
PYUSD is backed by cash and U.S. Treasury reverse repurchase agreements, as disclosed in its inaugural transparency report.
Has PYUSD received any form of regulatory approval?
Yes, Paypal has received authorization from the New York State Department of Financial Services to operate PYUSD.
How many PYUSD tokens are currently in circulation, and how many wallet addresses hold them?
As of September 20, 2023, approximately 44.37 million PYUSD tokens are in active circulation and are held by a total of 698 distinct wallet addresses.
What percentage of PYUSD supply is held by the top 100 wallet addresses?
The top 100 wallet addresses hold 99.96% of the total PYUSD supply, equivalent to 44,358,474.05 PYUSD tokens.
What is the intended future plan for PYUSD on Venmo?
The future plan is to make PYUSD available to all Venmo users in the coming weeks, enabling them to buy and transfer the stablecoin among Paypal and Venmo users as well as to compatible external wallets.
More about Venmo Incorporates Paypal’s Dollar-Backed Stablecoin PYUSD
- Paypal Official Announcement
- Venmo Official Website
- New York State Department of Financial Services Approval
- Etherscan ERC20 Token Transaction Fees
- PYUSD Transparency Report
- Coinbase Support for PYUSD
- Crypto.com Support for PYUSD
- Ethereum Blockchain Fees
- ERC20 Token Standard
- Financial Backing of Stablecoins
