PayPal boosts stablecoin access with Xoom
Collaborating with local partners Cebuana Lhuillier and Yellow Card, the initiative underscores PayPal’s strategy to leverage its stablecoin in regions with limited banking services.
PayPal has partnered with Xoom to enhance access to its stablecoin, PayPal USD (PYUSD), in Asia and Africa. Announced on 19 November, the collaboration aims to facilitate cross-border transactions even outside traditional banking hours. Xoom has teamed up with Cebuana Lhuillier and Yellow Card to manage PYUSD disbursements in these regions.
Launched in 2023, PYUSD is an Ethereum-compatible stablecoin backed 1:1 by US dollars and issued by Paxos Trust Company. It competes with other regulated stablecoins like USDC and is the only stablecoin integrated into PayPal’s payment system. PayPal has positioned PYUSD as a versatile digital currency for developers, wallets, and Web3 applications.
PayPal has been actively expanding PYUSD’s reach, including a recent launch on the Solana blockchain and partnerships with firms like MoonPay and Anchorage Digital. However, despite these efforts, PYUSD remains a smaller player in the market, lagging behind giants like USDT and USDC, which dominate the stablecoin sector with significantly larger market capitalisations.
