PayPal Holdings Inc.
PYPL,
is launching a U.S. dollar-denominated stablecoin, the company announced Monday. The PayPal USD stablecoin (PYUSD) will be redeemable one-to-one for U.S. dollars and will be issued by Paxos Trust Company, the company said in a release. “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” Chief Executive Dan Schulman said in a statement. PayPal shares were up about 1% in Monday’s premarket trading.
