The US-based payment giant PayPal launched a stablecoin, named PayPal USD (PYUSD), on Monday.
The firm said in a press release that the coin is fully backed by US dollar deposits, short-term US treasuries and similar cash equivalents.
PayPal said: "(It) can be redeemed 1:1 for US dollars."
The coin can be transferred between PayPal and external wallets, the firm also said.
"PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value," the press release noted.
