After PAYUSD Stablecoin, PayPal Eyes Move In Layer-2s and NFTs

Financial payments giant PayPal is reportedly exploring new opportunities in the blockchain space specifically with additional Layer 2 solutions along with non-fungible tokens (NFTs). PayPal's research and development priorities seem to revolve around several key areas, as revealed by a series of recently published patent applications.

Timeline of Paypal-usd

Paypal's stablecoin, PYUSD, has been operational for 38 days. The token's issuer, Paxos, has issued a transparency report related to the coin's reserves. Much like many of today's stablecoin industry leaders, PYUSD is supported by cash reserves and U.S. Treasury reverse repurchase agreements.

Chris Burniske, a prominent figure in the crypto industry and former head of the crypto department at ARK Invest, recently shared his perspective on the current state of the industry. In his recent commentary, he highlighted the significant potential of stablecoins, particularly in challenging market conditions.

European Central Bank (ECB) executive board member Fabio Panetta has warned about stablecoins issued by private providers, such as Paypal. He also provided an update on the progress of the digital euro.

Seychelles-based cryptocurrency exchange, Huobi announced that it will list PayPal's (NASDAQ: PYPL) newly launched stablecoin (PYUSD) on its platform by Sep. 7, 2023. The exchange said withdrawals will be enabled by Sep.12.

PYUSD is usable on both the web version of the exchange and the iOS and Android app, although still only in an experimental phase. Coinbase users can now buy, sell, convert, send, receive or store PYUSD tokens.

Following Paypal's declaration about the introduction of a fresh stablecoin, the smart contract address has revealed that the quantity of PYUSD stood at approximately 26.9 million. In the subsequent 22 days, the supply of PYUSD has risen by over 60%, now totaling 43.3 million.

While the community discusses low demand for PayPal's novel stablecoin and its potential regulatory risks, its trading volume on CEXes has witnessed a surprising upsurge. One exchange is responsible for almost 90% of PYUSD swaps registered in the last 34 hours, CoinMarketCap's data says.

Paypal's Ethereum-based stablecoin PYUSD has failed to capture crypto investors' interest. According to data from Nansen, 90% of the stablecoin's total supply still remains with its issuer Paxos' wallet.

Despite being backed by payments juggernaut PayPal and enjoying a scheduled listing today on Coinbase, the Paxos-issued stablecoin PYUSD seems to be struggling to gain on-chain adoption.

Earlier this month, PayPal (NASDAQ:PYPL), a top publicly traded Fintech, announced the launch of a dollar-based stablecoin PayPal USD or PYUSD. The stablecoin is being issued in partnership with Paxos, a top, regulated digital asset firm.