PayPal Launches Stablecoin to Boost Cryptocurrency Adoption

PayPal, the financial transaction company, launched a dollar-backed stablecoin on Monday in an effort to enhance the adoption of digital currencies for payments and transfers. The company stated that the stablecoin is backed by dollar deposits and short-term U.S. Treasury bonds, and it will be issued by Paxos Trust Company, gradually becoming available to the company's customers in the United States. PayPal's shares rose by 1.4% to $63.66. Stablecoins are cryptocurrencies designed to protect against extreme volatility that makes it difficult to use digital assets for payments or as a store of value.