PayPal Partners with Xoom for Stablecoin Expansion

Jimmy Aki
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PayPal has partnered with Xoom to advance cross-border stablecoin payments using its digital currency, PayPal USD (PYUSD). This move aims to strengthen PayPal’s presence in Asian and African markets, enabling smoother transactions outside conventional banking hours.

PYUSD’s Journey in the Stablecoin Market

According to PayPal, the collaboration will leverage Xoom’s payment network to improve accessibility to PYUSD. The partnership also involves Cebuana Lhuillier and Yellow Card, who will facilitate the disbursement of PYUSD in these regions.

Chris Maurice, CEO of Yellow Card, a partner in the initiative, emphasized the potential impact of stablecoins.

He stated, “Stablecoins like PYUSD are changing the payments landscape, and by integrating our technology, they will be able to move money in the most effective way possible thanks to our stablecoin and payments infrastructure.”

Launched in 2023, PYUSD is issued by Paxos Trust Company, a U.S.-regulated crypto custodian. Backed 1:1 by U.S. dollars, PYUSD is an Ethereum-compatible ERC-20 token, making it adaptable for developers, wallets, and Web3 platforms.

While PYUSD is the only stablecoin integrated into PayPal’s payment infrastructure, it lags behind competitors like Tether (USDt) and USD Coin (USDC) in market share.

Tether and USDC dominate the stablecoin market with market capitalizations of $128 billion and $37 billion, respectively, as of November 2024.

PayPal’s engagement with Web3 solutions extends beyond payments.

Through a partnership with MoonPay, the company introduced crypto purchasing features, allowing users to seamlessly integrate PayPal accounts with cryptocurrency platforms like Polymarket.

Furthermore, Anchorage Digital, a regulated crypto custodian, has introduced a rewards program for institutional clients holding PayPal USD (PYUSD) on its platform.

Launched in August 2024, the program allows users to earn rewards without relying on rehypothecation, staking, or lending. Anchorage Digital also offers Porto, a self-custody solution for entities such as venture and sovereign wealth funds.

According to the company, PYUSD remains fully accessible and securely segregated on-chain for swift deployment when needed.

Anchorage’s rewards initiative aligns with its mission to combine accessibility with asset protection, as emphasized by its CEO, Nathan McCauley, who noted, “Crypto innovators want to put their treasury cash to work but cannot compromise on asset security or accessibility.”

Stablecoins’ Growing Influence

Stablecoins have gained prominence for their ability to facilitate quick and cost-effective transactions.

PYUSD’s integration into Xoom reflects PayPal’s strategic response to the increasing demand for blockchain-based solutions in global financial systems.

In another development showcasing stablecoin innovation, Binance and Tether recently integrated Tether (USDT) into the Toncoin Network.

This integration, announced on June 21, enhances USDT’s usability by allowing Binance users to deposit and withdraw stablecoin through the Toncoin Network.

The move promises faster transactions and reduced fees, making it an appealing option for both everyday users and businesses managing large transfers.

The Toncoin Network also strengthens security for USDT transactions. Known for its robust blockchain framework, it provides advanced protection against fraud and hacking attempts.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.