Singapore-based financial institution Triple-A is adding PayPal’s PYUSD stablecoin to its payment services.
The move, announced Wednesday (May 29), will let the company’s clients accept the stablecoin as a payment method, and facilitate cross-border payments using the stablecoin.
As Triple-A notes in a news release, PYUSD — launched last August and issued by Paxos Trust Company — has seen its market capitalisation more than double, while daily transaction volumes have surged by more 600% since its debut, trends the company says increasing consumer and business confidence in its utility and stability.
“With PayPal’s extensive user base, the launch of PYUSD positions them to become a leading force in the stablecoin market,” Eric Barbier, CEO of Triple-A.
“Integrating PYUSD into our payment solutions enhances our ability to offer businesses worldwide cost-efficient, secure, and fast payment options.”
According to the release, Triple-A aims to more than double its payment volumes by the end of 2024, with the help of the PYUSD integration.
PYMNTS wrote about the increased use of stablecoins in payments last month, noting that unlike “traditional cryptocurrencies like bitcoin, which are notorious for their price fluctuations, stablecoins offer a level of stability that closely mirrors that of traditional currencies.”
Among their immediate benefits for businesses are their ability to streamline cross-border transactions, while also serving as a new tool for more efficient liquidity management.
“But are stablecoins, which have been around for a while and come with their own share of controversies, a viable way for Web3 participants to reframe assumptions about the use of blockchain-based applications within traditional finance and payments?” that report asked.
Stablecoins do allow businesses to access instant settlement and liquidity without having to turn to intermediary banks or payment processors. This can optimize cash flow management and reduce dependency on traditional banking infrastructure.
“And the fact that every transaction conducted using stablecoins is recorded on the blockchain, providing an immutable audit, can help CFOs and treasurers enhance compliance, reduce fraud, and streamline auditing,” PYMNTS wrote.
As noted here this winter, advocates for blockchain’s basic technical capabilities want to separate the technology from its associations with cryptocurrency. It’s partially why, with the digital economy continuing to expand, the adoption of stablecoins in mainstream payments seems to be growing with it.
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