Silicon Valley-based payments giant PayPal is again looking to expand its use of the PYUSD stablecoin.
The company announced that starting Thursday, U.S. customers will be able to make international money transfers using the company’s PYUSD stablecoin. PayPal said in a statement that cross-border payments service Xoom now allows U.S. customers to convert PYUSD to USD and then send money to “recipients in approximately 160 countries” without transaction fees.
PayPal appears confident that the market will embrace a more cost-effective method for sending international money. The statement cited a World Bank report titled “Average Transmission Costs Around the World.” $200 “It’s a little over 6%.”
Fintech companies are working to increase the utilization of stablecoins launched last year while establishing themselves as trusted institutions in the digital asset field. When it launched its stablecoin, PayPal said the world was shifting toward increased use of cryptocurrencies.
“Offering U.S. Xoom users the option to fund cross-border transfers using PYUSD is part of our efforts to drive mainstream adoption of cryptocurrencies,” PayPal’s Jose Fernandez da Ponte said in a statement. “It is based on the goals of .” Da Ponte is SVP of PayPal’s Blockchain, Cryptocurrency and Digital Currency Group.
Stablecoin market heats up
PayPal’s announcement also comes as the stablecoin market heats up. Ripple announced on Thursday that it would launch a stablecoin designed primarily for enterprise customers. Ripple said in a statement that the stablecoin market could grow to $2.8 trillion by 2028.
Currently, Tether’s USDT and Circle’s USDC stablecoins are the clear leaders in terms of supply, according to The Block Data Dashboard.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal, writing about Disney, Netflix, Warner Bros. and the creator economy, focusing primarily on technological disruption across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a variety of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.