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Payments firm PayPal on Monday launched a US dollar stablecoin in a bid to boost the adoption of digital currencies for payments and transfers.
The stablecoin, known as PayPal USD, is backed by US dollar deposits and short-term US Treasuries, and will be issued by Paxos Trust Co, according to the company.
PayPal's shares rose 1.4 per cent to $63.66.
Stablecoins are cryptocurrencies designed to be protected from the wild volatility that makes it difficult to use digital assets for payments or as a store of value.
PayPal USD is pegged to the dollar and will gradually be available to the company's customers in the United States, the digital payments firm said.
Last month a US congressional committee failed to come to an agreement on a bill to establish a federal regulatory framework for stablecoins.
Visa had said in 2021 that it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network.