Payments infrastructure provider BVNK announces the integration of the US dollar-pegged stablecoin, PayPal USD (PYUSD). This move broadens BVNK’s offerings to include 15 digital currencies, leading stablecoins, and 25 fiat currencies on their platform.
PYUSD, issued by Paxos Trust Company under the oversight of the New York Department of Financial Services (NYDFS), offers a trusted and efficient option for global payments. BVNK’s role as an approved member within the PYUSD ecosystem allows them to directly mint and burn PYUSD tokens for their customers.
BVNK customers gain access to a range of functionalities with this integration. They can create PYUSD wallets, settle payments to suppliers, contractors, and employees globally, and accept PYUSD payments from consumers. Additionally, conversion to fiat currencies like EUR and GBP is available.
BVNK also addresses that PYUSD is not regulated in the UK and crypto is a high risk investment not protected by regulations in case something goes wrong hence users should take time to learn more about it.
BVNK co-founder and VP Commercial Strategy Chris Harmse, said: “We’re building modern payments infrastructure to enable more businesses to operate across banks and blockchains and maximise financial flexibility. Stablecoins make up almost 90% of the payments we process, and they’re very important to our customers as a way to settle global payments efficiently. We’re thrilled to introduce PYUSD to our platform. As a stablecoin that connects into PayPal’s extensive payments network, it’s a valuable payment option for many businesses.”
Nick Robnett, Head of Asset Growth at Paxos said: “As a dollar-pegged stablecoin that is issued by Paxos Trust Company, which is overseen by New York Department of Financial Services, PYUSD is bringing greater trust to digital assets. We’re seeing growth every day as it’s rolled out across the PayPal ecosystem – and we’re delighted to team up with BVNK to give more businesses access to PYUSD, and more options for how they move their money globally.”
Stablecoins are experiencing significant growth, with over $7 trillion settled on blockchains in 2023 alone. Monthly active users surpassed 27.5 million in April, with 47 million active wallet addresses. Today, they account for nearly 70% of all blockchain transactions, eclipsing established digital currencies like Bitcoin.
PYUSD, launched in August 2023, is an ERC-20 token on the Ethereum blockchain. It garnered significant traction, with 11 million users trading PYUSD within its first six weeks. By April 2024, it reached a market cap of $320 million.
Backed by US dollar deposits, treasuries, and cash equivalents, PYUSD offers a 1:1 redemption guarantee. However, it’s vital to understand the inherent counterparty risk associated with stablecoins, where asset availability during insolvency events cannot be guaranteed.
It is important to understand that stablecoins create an exposure to counterparty risk, which may mean assets become unavailable during an insolvency event, and stablecoin value is not guaranteed. Take a few moments to learn more about stablecoin risks, here.
Also Read: PayPal Enables PYUSD to USD Conversions for Global Transfers
