PayPal has announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), which is fully backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents. The stablecoin, issued by Paxos Trust Company, can be redeemed 1:1 for U.S. dollars and will be available to consumers, merchants, and developers. It is designed to reduce friction for payments in virtual environments, facilitate fast transfers of value, and foster the expansion into digital assets.