PayPal has unveiled a new service that will allow U.S. customers to make cross-border money transfers utilizing the company’s PYUSD stablecoin.
Starting Thursday, users of U.S.-based Xoom’s international payments service will be able to convert PYUSD to USD and then send funds to “recipients in approximately 160 countries” without transaction fees, PayPal said.
Silicon Valley-based payments giant PayPal is once again expanding the utility of its PYUSD stablecoin to facilitate more efficient international transactions.
This move signals PayPal’s confidence in the market’s need for more cost-effective ways to send international money. Referring to a World Bank report, PayPal noted that “the global average cost of sending $200 is just over 6%.”
In addition to promoting the use of stablecoins launched last year, PayPal aims to establish itself as a reputable player in the digital asset space in line with the evolving cryptocurrency adoption landscape globally.
Jose Fernandez da Ponte, senior vice president of PayPal’s Blockchain, Cryptocurrency and Digital Currency Group, emphasized the importance of allowing U.S. We have further developed our goals.
The stablecoin market appears to be gaining momentum with PayPal’s announcement. Ripple recently announced plans to introduce stablecoins primarily to enterprise customers, and expects the stablecoin market to reach $2.8 trillion by 2028.
According to data from The Block Data Dashboard, Tether’s USDT and Circle’s USDC stablecoins currently dominate the market on the supply side.
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