Introduction

Venmo is a peer-to-peer payment app set to offer PayPal USD (PYUSD), which is ERC-20 stablecoin, in the coming weeks.

This move integrates PYUSD into the Venmo platform, creating a smooth channel for transferring assets between millions of users.

Venmo Users Can Purchase PYUSD

According to a PayPal press release, Venmo users will soon be able to “purchase PYUSD and send it to friends and family on PayPal, Venmo, and compatible external wallets.”

Twitter Announcement

Wallet Interoperability and Cost-effectiveness

The integration of PYUSD in Venmo is promoted by PayPal as the “first example of a stablecoin enabling wallet interoperability at scale with no cost.”

PayPal highlights the efficiency and cost-effectiveness of this system, explaining that transfers between PayPal and Venmo users take place fast and for free, linking two wallets with millions of users of each. This statement indicates an important step towards making digital transactions more simplified and less costly.

PYUSD Launch and Conversion Feature

PayPal initially launched PYUSD on August 7 in cooperation with the cryptocurrency infrastructure company Paxos. The stablecoin is supported by the United States dollar and helps ensure its stability. About a month later, on September 11, PayPal added a feature that allowed users to convert digital coins to US banknotes.

Continued Expansion into the Cryptocurrency Market

The introduction of Venmo’s PYUSD continues PayPal’s ongoing efforts to expand into the cryptocurrency market. Venmo itself started offering cryptocurrency purchases in 2021, making PYUSD another digital asset that its users can deal with. According to PayPal, the mission behind PYUSD is to deploy a secure and regulated service stablecoin that is widely used for the web3 ecosystem and daily payments.

Adoption and Support

PYUSD is not only available on PayPal and Venmo, but it has also gained huge adoption across various crypto platforms. According to the press release, PYUSD is already present on select exchanges including Crypto.com, Bitstamp, Coinbase, and Kraken. It has also gained support from leading governance platforms, guardians, crypto payment service providers, and widely used decentralized applications.

Regulatory Approval

Furthermore, PYUSD has been greenlisted by the New York Department of State of Financial Services, making it easier for licensed entities in New York to support the stablecoin. As the cryptocurrency ecosystem continues to evolve, the introduction of PYUSD to Venmo represents an exciting chapter in the quest for more efficient and cost-effective digital transactions.