PayPal’s Dan Schulman, who is stepping down from his role as CEO by year-end, announced the launch of a US dollar-denominated stablecoin on Monday called “PayPal USD.”
Some on Wall Street believe PayPal has been too slow in selecting a successor, as far back as May (via Payments Dive) and as recently as Thursday, when Reuters’ ran the headline, “PayPal pays price for prolonged CEO hunt.”
During last week’s second-quarter earnings call, Schulman said PayPal had narrowed the field to “several outstanding candidates, all of whom are highly qualified and excited to lead PayPal as we go into our next chapter of growth.”
Perhaps the delay is because Schulman wanted credit for today’s big crypto news. PayPal’s PYUSD is a “stablecoin” cryptocurrency tied to the US dollar. (“Stablecoins are a type of cryptocurrency whose value is tied to another asset class to keep a stable, steady value,” according to Coin Desk, which also said this marked the first time a major financial company issued its own stablecoin.)
Dan Schulman wrote in a LinkedIn post on Monday:
“I am proud to announce that PayPal has launched a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). Beginning today, U.S. customers who purchase PYUSD will be able to transfer it between PayPal and compatible external wallets, send person-to-person payments using PYUSD at no cost, fund purchases with PYUSD at checkout, and convert any of PayPal’s supported cryptocurrencies to and from PYUSD.
“Digital currencies have the potential to transform the financial system. By enabling transactions that are instant, low-cost, and secure, digital currencies and the technology that enables them can help dramatically improve financial inclusion, making affordable financial services accessible to more people.
“Our commitment to responsible innovation and compliance, and our track record of delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.
“Congratulations to Jose Fernandez da Ponte and PayPal’s Blockchain, Crypto and Digital Currencies (BCDC) team for their tireless work to bring this innovation to our customers.“
According to PayPal’s press release on Monday, “PayPal USD (PYUSD) is fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.”
PayPal USD is not available in Hawaii, more information is available on the PayPal website. (As always, make sure you are really on the PayPal website should you decide to log in.)
