Latest news with #PayPalUSD
CNBC
29-05-2025
- Business
- CNBC
Stablecoins are reaching an inflection point. Wells Fargo says these stocks could be affected
Crypto's stablecoin sector is becoming increasingly attractive to traditional financial services players, something that could have big implications for payments stocks, according to Wells Fargo. Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the dollar. They are designed to bring the stability of traditional currencies to blockchain networks (praised for the speed and efficiency they provide money transfers). Traditionally used as bridge currencies for crypto traders, banks and payment firms are becoming interested in them as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes progress on passing stablecoin legislation by August. "Ultimately, the momentum around stablecoins has reached must-monitor levels , both quantitatively (evidenced by market caps of leading stablecoins) and qualitatively ( crypto-friendly rhetoric from Washington )," Wells Fargo analysts led by Andrew Bauch said in a note Thursday. The market cap for stablecoins has grown 16% this year and 43% in the past year, according to CryptoQuant. Tether's USDT dominates the market by 67.5%, followed by Circle's USDC , which makes up about 27% of the market. "We see a healthy balance of threat and opportunity, with more significant implications for commercial cross-border & B2B rather than domestic consumer payments," the note said. "While everyday adoption for consumers is likely a decade away, the advantages of stablecoins seem clear." Specifically, they highlighted: Instantaneous authorization, clearing & settlement, reduced funding costs, and arguably most importantly; and open interoperability for smart contracts. Here are five stocks that most need or are likely to strategize around stablecoins, per Wells Fargo: Mastercard has built tools powered by stablecoins and formed partnerships with the popular Ethereum wallet MetaMask as well as the major crypto exchanges Kraken and Binance. That's all part of an effort to bring consumers into the stablecoin ecosystem by letting them spend them using traditional cards. PayPal was at the forefront of stablecoin enablement when it launched PayPal USD (PYUSD) in 2023 . Although the coin makes up less than 1% of the stablecoin market, PayPal recently took measures , both internally and in its partnership with Coinbase , to increase the coin's use and boost on-chain payment opportunities for consumers and institutional users. The most obvious use cases for stablecoins include peer-to-peer payments, business-to-business payments and cross-border payments and remittances, according to Well Fargo. Global cross-border revenue was roughly $44 trillion in 2023, according to McKinsey. Commercial payments accounted for about $33 trillion of that versus about $11 trillion in consumer payments, predominately remittances and cross-border commerce payments.
Yahoo
15-05-2025
- Business
- Yahoo
Ondo Finance enables 24/7 conversions between OUSG and PayPal USD
Ondo Finance has launched 24/7 instant conversions between its tokenized Treasury product, OUSG (Ondo Short-Term US Government Treasuries), and PayPal USD (PYUSD), the stablecoin issued by Paxos and available via PayPal and Venmo. The update allows users to seamlessly mint OUSG using PYUSD and redeem it back to PYUSD anytime, offering greater liquidity for OUSG holders and boosting the real-world utility of PayPal's stablecoin. The $25 million conversion facility is one of the largest of its kind between a stablecoin and tokenized money market fund. 'Enabling OUSG and PYUSD conversions broadens the range of trusted, high-quality settlement options available to our clients,' said Nathan Allman, CEO of Ondo Finance. 'We're thrilled to deepen our relationship with PayPal and play a leading role at the intersection of traditional finance and DeFi.' The launch is part of Ondo Nexus, the firm's tech platform that supports instant liquidity for tokenized Treasury issuers. With this system, holders of tokenized Treasuries — including those offered by other issuers — will be able to redeem their assets instantly for stablecoins like PYUSD. OUSG remains Ondo's flagship product with over $525 million in total value locked. It offers 24/7 redemptions with no fees, daily interest accruals, and multi-chain support on Ethereum and Solana. The fund is backed by high-quality assets, including BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), Franklin Templeton's OnChain U.S. Government Money Fund, WisdomTree's Digital Government Money Market Fund, and FundBridge Capital's Ultra Short Treasury On-Chain Fund. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-05-2025
- Business
- Yahoo
Here's How the Coinbase-PayPal Stablecoin Deal Could Rock Crypto
Coinbase is teaming up with PayPal to promote its PayPal USD stablecoin. Mixing Coinbase's crypto credentials with PayPal's huge payment network could mean more crypto adoption. PayPal USD lags behind other stablecoins, but it has big plans. Coinbase (NASDAQ: COIN) and PayPal (NASDAQ: PYPL) have teamed up to make the payment giant's stablecoin, PayPal USD (CRYPTO: PYUSD), easier to buy and use. Coinbase is one of the leading U.S. crypto exchanges, and PayPal is a major player in e-commerce and online payments. Stablecoins are cryptocurrencies that are pegged to real-world assets such as the U.S. dollar. As such, they offer a blockchain-based payment method that doesn't suffer from crypto's usual volatility. There's fierce competition for market share among the various stablecoins, and PayPal's Coinbase deal could give it a serious leg up. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Let's look at why the deal matters and how increased stablecoin usage is good for the wider crypto ecosystem. On April 24, Coinbase and PayPal said they had deepened their partnership to increase the adoption of the PYUSD stablecoin. PayPal wants to integrate PYUSD into more of its products to make payments cheaper and faster for merchants. The deal means: You can now buy PayPal USD fee-free on Coinbase. You can convert PayPal USD directly into U.S. dollars. For crypto investors, one important part of the deal is that the two companies plan to collaborate on ways to use PYUSD in decentralized finance (DeFi). DeFi allows people to manage money without relying on intermediaries like banks. An example would be earning interest through peer-to-peer lending. Increased adoption of DeFi is somewhat of a work in progress. It's hampered by various issues, from limited utility to security and regulatory concerns. It could be a real-world use case for cryptocurrency, but it has a long way to go before people trust it with their cash. PayPal introduced its dollar-pegged stablecoin in 2023, but it has yet to take significant market share from current leaders, Circle's USDC and Tether. This deal increases PayPal's potential to disrupt the status quo and become a serious player in the stablecoin race. Stablecoins are a significant force in the crypto world. According to stablecoin transfer volume reached $27.6 trillion in 2024 -- more than the combined volume of Visa and Mastercard. Stablecoins bring many of the advantages of blockchain technology, such as speedy, low-cost transactions, without the volatility of other cryptocurrencies. People talk about stablecoins as a relatively safe way to dip your toe in the crypto waters, but that's not entirely true. First, stablecoins are not as safe as people like to think. Second, by nature, their prices won't increase the way Bitcoin or Ethereum might. And third, a stablecoin that's pegged to the U.S. dollar can't act as a hedge against the devaluation of that same currency. Sure, prices won't decrease dramatically either -- unless the stablecoin fails, which is what happened with TerraUSD in 2022. People put a small part of their investment cash into cryptocurrency because they think it might increase in value over time, and stablecoins won't do this. If you're holding stablecoins as a safe investment, you'd be better off leaving your money in the bank. Stablecoins can sometimes generate passive income in the form of interest paid on deposits. For example, PayPal told Bloomberg it will offer a 3.7% yield on PYUSD holdings, starting later this year. But that's also more complicated than it seems. Unlike dollars in a bank, stablecoins are not protected by Federal Deposit Insurance Corporation coverage. Some stablecoin issuers, such as PYUSD and USDC, say that they back every coin issued with real-world assets. This helps them maintain their peg and offers protection against the stablecoin equivalent of a bank run. Even so, there's a lot of uncertainty about what consumer protections apply to these bank-like services. Regulation is in the pipeline, but not yet in place. One reason cryptocurrency is such a risky investment is that we don't know how it will evolve. However, the more mainstream crypto becomes, the better its chance of success. That's why PayPal's commitment to bolstering its stablecoin matters. PayPal has more than 425 million user and merchant accounts. In 2024, it handled almost $1.7 trillion in payments. If Bitcoin, Ethereum, and other cryptocurrencies are to achieve their potential, people need to use them. That might mean putting some Bitcoin in your portfolio. Or using applications built on Ethereum's blockchain. Or using PYUSD to pay for your next pizza delivery. Or a combination of all three. Regulatory clarity, institutional investment, and improved infrastructure all play a part in supporting crypto, but adoption is crucial. And that's why this Coinbase-PayPal deal could be important for crypto in the long term. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PayPal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. Here's How the Coinbase-PayPal Stablecoin Deal Could Rock Crypto was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
SEC Closes PayPal PYUSD Probe As Rollback Of Gensler-Era Crypto Enforcement Barrage Continues
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. PayPal has said the SEC has dropped its investigation of PYUSD. The decision offers another insight into the current SEC's stance on stablecoins. PayPal is looking to make strides in the cryptocurrency industry with PYUSD as the focus. During Gary Gensler's tenure as chair of the Securities and Exchange Commission, the agency launched several cryptocurrency-related enforcement actions and investigations, arguing that most cryptocurrencies were unregistered securities. However, in the months following Gensler's departure, the SEC has paused and dismissed cryptocurrency-related enforcement actions and investigations as part of a broader pro-crypto shift under President Donald Trump. In the latest instance, PayPal (NASDAQ:PYPL) said that the SEC has ended a probe of its dollar-backed stablecoin product, PayPal USD or PYUSD. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . In a Tuesday regulatory filing, PayPal said the SEC closed its investigation of PYUSD 'without enforcement action.' PayPal first received notice of the probe in November 2023. At the time, the SEC sent a subpoena requesting 'the production of documents' tied to PYUSD, the firm said, without specifying what documents the agency requested. The decision to drop the PYUSD probe offers another indication of the current SEC's stance on stablecoins. In an April 4 statement, SEC Division of Corporation Finance staff issued guidance stating that it did not view fully backed dollar-pegged stablecoins marketed for payments and not for interest or yield as security offerings. At the same time, the move is a significantly positive development for PayPal as the firm shows a renewed desire to make inroads into the cryptocurrency space through PYUSD. Trending: New to crypto? on Coinbase. 'We're moving quickly to bring the benefits of crypto and stablecoins to our customers and the industry,' PayPal CEO Alex Chriss said during the firm's Q1 earnings call on Tuesday. Indeed, last week, the firm unveiled a loyalty offering for U.S. users holding PYUSD in their PayPal and Venmo wallets, offering 3.7% annual rewards. In addition to this rewards program, PayPal announced a partnership with Coinbase (NASDAQ:COIN), the largest U.S. cryptocurrency exchange by volume, to drive the adoption of PYUSD. As part of the partnership, Coinbase users can trade PYUSD with no fees on the exchange and redeem their PYUSD for U.S. dollars on the platform. Beyond these perks, PayPal said it is exploring payments and decentralized finance opportunities for PYUSD with Coinbase. During Tuesday's earnings call, Chriss said these efforts to 'increase the option and use of digital currencies for everyday commerce, from sending money internationally to making purchases and more. ' PayPal's renewed efforts to push PYUSD come as stablecoin regulations, which could bolster the legitimacy of the big crypto business, look set to go live soon in the U.S. According to Politico, lawmakers will vote on at least one bill before Memorial Day. At last check, PYUSD has a market capitalization of just $887.5 million, far from market leaders USDT and USDC, which have market capitalizations of $142.4 billion and $61.7 billion, respectively. Read Next: A must-have for all crypto enthusiasts: . Maximize saving for your retirement and cut down taxes: . Image: Shutterstock Send To MSN: 0 This article SEC Closes PayPal PYUSD Probe As Rollback Of Gensler-Era Crypto Enforcement Barrage Continues originally appeared on Sign in to access your portfolio
Int'l Business Times
01-05-2025
- Business
- Int'l Business Times
Trump-Backed WLFI's $USD1 Becomes Fastest-Rising Stablecoin From $0 To $1B Market Cap
Donald Trump backs World Liberty Financial and has actively promoted the project on social media. WLFI Website / Screenshot $USD1's market cap passed $2 billion Wednesday, becoming the 7th largest stablecoin by market value The stablecoin has also passed the more tenured $PYUSD stablecoin in market cap Some crypto users are concerned about why $USD1 and $WLFI aren't listed on major exchanges yet World Liberty Financial's (WLFI) USD1 stablecoin has passed a $1 billion market cap, but that's not the bigger story, as digital assets scalability provider BitGo revealed that the U.S.-backed token also logged the "fastest rise from 0 to $1B in stablecoin history." Since officially launching late last month, USD1 has made major strides, including its meteoric rise to CoinGecko's top 10 largest stablecoins by market cap. As of late Wednesday, USD1 is the world's seventh-most valuable stable token. Congratulations to the @worldlibertyfi team on USD1 reaching a $1B market cap — the fastest rise from 0 to $1B in stablecoin history!Now ranked among the top 10 stablecoins globally. Honored to support USD1, built on BitGo's Stablecoin-as-a-Service platform.@zachwitkoff… — BitGo (@BitGo) April 29, 2025 Quite interestingly, USD1 has surpassed the PayPal USD (PYUSD) market capitalization, given the latter's considered veteran status in the stablecoin segment. Trading volumes around USD1 passed 28 million in the last 24 hours, highlighting increasing interest among cryptocurrency users for the stablecoin launched by a DeFi firm promoted by U.S. President Donald Trump. Just around a day since USD1 hit the $1 billion milestone, it surpassed $2 billion in market cap and, as of late Wednesday, has logged a market value of over $2.12 billion. $USD1 has risen to become the world's seventh-largest stablecoin by market cap on CoinGecko, toppling PayPal's $PYUSD. CoinGecko Questions Remain Amid WLFI's Big News Despite the massive milestone for a Trump-backed crypto venture, some crypto users want their questions answered and seemed to ignore the development. "Bla, bla, bla. What about WLFI? More importantly," asked one user, who was referring to the WLFI token, which has had a rough start since it was announced due to alleged security risks and questions around its tokenomics. There were also other crypto users who wanted to know when the WLFI coin would be listed as they were more concerned about the token than USD1. Others were also concerned about both WLFI and USD1 not being listed on major crypto exchanges. "Investors who trust and buy WLFI should be transparent about when this will happen," one user wrote. WLFI Shrugs Off Concerns, Bags New Deals Despite continuing concerns around the way WLFI has been handling its business, the DeFi firm, which Trump officially promoted early on, has been pushing forward. Earlier this year, the company spent millions to buy several crypto assets, including Wrapped Bitcoin (wBTC) and Movement (MOVE). Just last week, it signed a Memorandum of Understanding (MoU) with the government of Pakistan after the team's representatives met with the Pakistan Crypto Council. Historic moment: WLFI has officially signed an MOU with Pakistan 🇵🇰x🦅It was an incredible experience meeting with the Pakistan Crypto Council and the leaders shaping the future of proud to be building with Pakistan to drive innovation forward. This is just the… — WLFI (@worldlibertyfi) April 28, 2025 According to the Council, the collaboration will help "accelerate blockchain innovation in Pakistan" and includes collaborative work on exploring real-world asset (RWA) tokenization and blockchain financial product testing, among others. Also last week, WLFI founders met with Binance founder Changpeng "CZ" Zhao to discuss the global state of crypto adoption among other crypto-related topics. © Copyright IBTimes 2024. All rights reserved.
