PYUSD is fully backed by US dollar deposits, short-term US treasuries and similar cash equivalents, and it represents a significant milestone in expanding access to secure, stable digital assets for OANDA Crypto users.
Announcing the Listing of PayPal Dollar (PYUSD) on OANDA Crypto
We are pleased to announce the listing of PayPal Dollar (PYUSD) on all OANDA Crypto trading platforms. This new listing offers our users access to a new class of stablecoin with the reliability and reputation of one of the world’s leading financial technology companies, PayPal.
Image courtesy of PayPal.
PayPal Dollar (PYUSD): Everything you need to know
What is PYUSD?
PayPal Dollar (PYUSD) is a U.S. dollar-pegged stablecoin designed to offer the stability of fiat currency within the digital asset space. As a stablecoin, PYUSD is specifically engineered to maintain a 1:1 value with the U.S. dollar, offering users a secure and stable store of value while engaging in digital transactions.
Developed in partnership with PayPal and Paxos, PYUSD represents a strategic advancement in the convergence of traditional finance and blockchain technology. Its integration with PayPal’s vast global network adds significant credibility and reliability, positioning PYUSD as a key player in the stablecoin landscape.
Backing and Stability of PYUSD
PYUSD is fully backed by U.S. dollar reserves, providing a robust foundation for its value. Each issued PYUSD token is supported by a corresponding U.S. dollar held in reserve. These reserves consist of a combination of highly liquid U.S. dollar-denominated assets, including short-term U.S. Treasury securities and cash, ensuring liquidity and ease of redemption.
PayPal has committed to regular, transparent attestations by independent third-party auditors, reinforcing investor confidence in the stability of PYUSD. This transparency ensures that the supply of PYUSD is fully collateralised, mitigating counterparty risk and maintaining the token's 1:1 parity with the U.S. dollar.
Use Cases for PYUSD
PYUSD offers a range of applications for both institutional and retail users, driven by its stability and seamless integration into the broader digital finance ecosystem. Key use cases include:
- Efficient Settlement: PYUSD enables investors and institutions to settle transactions quickly and securely, particularly in markets where price stability is critical. Its pegged value to the U.S. dollar allows for reliable cross-border settlements without exposure to volatility.
- Portfolio Diversification: For investors, PYUSD offers a stable digital asset for managing liquidity, hedging against volatility, and optimising portfolio allocation strategies within the cryptocurrency space.
- Decentralised Finance (DeFi): PYUSD can be deployed within DeFi protocols for lending, borrowing, and yield generation, offering investors a stable option for participating in the DeFi ecosystem.
- Institutional Payments and Transfers: PYUSD provides a stable, secure vehicle for moving funds across borders or between counterparties with minimal friction. Its backing by PayPal’s infrastructure ensures security and scalability for high-volume institutional use cases
- Market Stability: Traders can use PYUSD as a stable trading pair, minimising volatility while engaging in cryptocurrency trading or moving funds in and out of more volatile digital assets.
PYUSD: a great addition to the OANDA Crypto offering
The addition of PayPal Dollar (PYUSD) to our exchange represents a significant milestone in expanding access to secure, stable digital assets for our users. PYUSD’s combination of robust backing, institutional-grade transparency, and diverse use cases makes it a valuable asset for investors seeking stability in an evolving market.
To celebrate our new token listing partnership and milestone for OANDA Crypto, we’ll be offering commission-free trading on all PYUSD pairs!
We encourage you to explore the benefits of PYUSD on our platform and consider how it may complement your existing crypto investing strategies.
Supported PYUSD Markets:
GBP/PYUSD, EUR/PYUSD, USDC/PYUSD, USDT/PYUSD
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