PayPal Launches US Dollar Stablecoin PYUSD

PayPal Launches Stablecoin PYUSD

Payments heavyweight PayPal has announced the launch of a U.S. dollar stablecoin, marking a significant step for a major financial technology firm into the world of digital currencies. Named PayPal USD or PYUSD, this new digital token is backed by U.S. dollar deposits and short-term U.S Treasuries, and will be issued in collaboration with Paxos Trust Co. The move, which lifted PayPal's shares by 2.66%, signals the company's confidence in the cryptocurrency industry despite its recent challenges, including regulatory pressures and high-profile failures.

While stablecoins have existed for years, efforts to mainstream them into consumer payments have been largely unsuccessful, with prior attempts by significant companies meeting with resistance from regulators. PayPal's move comes at a time when a federal regulatory framework for stablecoins is advancing in the U.S. House Financial Services Committee, aiming to focus on registration and approval rules for stablecoin issuers.

The introduction of PYUSD is seen as a groundbreaking moment for both PayPal and the entire financial industry, with Paxos heralding it as "the next phase of U.S. dollars on the blockchain." This launch could potentially reshape the way stablecoins are perceived and used, not only as tools for trading other cryptocurrencies but as viable components of the broader financial system.

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BTC price stability hinting at a major move

The world's largest digital currency, Bitcoin, has experienced a significant decrease in daily price fluctuations over the past month. Market interest has dwindled, leading to a period of rangebound trading. 

According to data, there have only been six days out of the previous 26 where Bitcoin's price movement exceeded 1%. This level of stability and lack of volatility hasn't been seen since January, shortly after FTX collapsed. The current low levels of trader indifference and market excitement can be attributed to the cooling expectations following a speculative-driven rally in June.

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A user burns $4.5 million worth of ETH 

Crypto enthusiasts were left astonished when an anonymous person, operating under the ENS alias nd4.eth, transferred 2,500 ether (equivalent to $4.5 million) to a burn address. This deliberate action resulted in the permanent destruction of the coins without any apparent motive or justification.

Although this transaction occurred on July 26th, it has only recently garnered significant attention across the crypto community. As a result, speculation and curiosity within this realm have surged dramatically. However, details surrounding the underlying reasons behind this peculiar act remain scarce.

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Sino Global asks for $67 million from FTX-Alameda

Sino Global Capital, led by Matthew Graham, has initiated legal action against FTX Trading Ltd., seeking a claim of $67.3 million on behalf of Sino's Liquid Value fund. The fund, created in collaboration with Sam Bankman-Fried in 2021, had the objective of raising $200 million and primarily focused on attracting high net worth individuals. 

This marked a significant change for Sino as it was their first instance of seeking external capital through a formalized fund structure.

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Worldcoin Nairobi offices raided 

Reports from local news organizations reveal that Kenyan authorities conducted a raid on Worldcoin's warehouse in Nairobi, seizing both documents and equipment. Immaculate Kassait, the commissioner of Kenya's Office of the Data Protection, stated that Tools for Humanity, the parent company of Worldcoin, failed to disclose its true motives upon registering in Kenya. The confiscated data has been transported to the Directorate of Criminal Investigations headquarters for further analysis by a police team.

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Other breaking news

• Core Scientific to exit bankruptcy by year-end, says CEO
• BTC hodlers control 14.599 million BTC
• Binance’s VC arm dominates funding rounds
• Lido sees 10K ETH stakers in July
• Musk says he will never launch a Twitter/X crypto coin

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Wrapping up

That’s all for today’s edition, folks. Today’s drop covered Worldcoin’s woes in Afrika continue as Nairobi police raid its offices, and in other news, Sino Global is looking to sue FTX/Alameida for $67 million. In a shocking development, a ETH holder burned $4.5 worth of ETH, equally shocking to the crypto world is the news that PayPal is launching its own stablecoin. Stay tuned for more updates in our rapidly evolving space.