BVNK Integrates PayPal USD Stablecoin (PYUSD)

BVNK, a payments infrastructure provider, has integrated PayPal's stablecoin, PYUSD, issued by Paxos Trust Company. PYUSD is a dollar-pegged stablecoin backed by US dollar deposits, allowing BVNK customers to access PYUSD for global payments, supplier settlements, and consumer payments. The integration aims to enhance financial flexibility and provide a reliable payment option for businesses. Despite the risks associated with counterparty exposure and the lack of protection for investments, stablecoins have seen significant growth, with PYUSD attracting millions of traders since its launch in August 2023.

BVNK Integrates PayPal USD Stablecoin (PYUSD)

London, United Kingdom – May 15, 2024 – BVNK, the leading payments infrastructure provider, has today announced the integration of the stablecoin PayPal USD (PYUSD) onto its platform. This integration allows businesses to access and utilize the US dollar-pegged stablecoin alongside 14 other popular digital currencies, leading stablecoins, and 25 fiat currencies.

PYUSD, issued by Paxos Trust Company, is solely regulated by the New York Department of Financial Services (NYDFS), providing businesses with a stable and secure option for global payments. As an approved member of the PYUSD ecosystem, BVNK gains direct access to create (mint) and remove (burn) PYUSD tokens for its customers.

Chris Harmse, BVNK's Co-founder and VP of Commercial Strategy, emphasized the significance of stablecoins in modern payments. "We are committed to building innovative payments infrastructure that empowers businesses to operate seamlessly across banks and blockchains, maximizing their financial flexibility," he said. "Stablecoins constitute nearly 90% of our processed payments and are crucial for our customers in facilitating efficient global settlements. We are delighted to introduce PYUSD to our platform, a stablecoin connected to PayPal's extensive payments network, offering a valuable payment option for numerous businesses."

Nick Robnett, Head of Asset Growth at Paxos, commented on the growing trust and adoption of PYUSD. "As a dollar-pegged stablecoin issued by Paxos Trust Company, regulated by the NYDFS, PYUSD enhances the trustworthiness of digital assets," he said. "We are witnessing its exponential growth within the PayPal ecosystem. We are thrilled to partner with BVNK to provide businesses with increased access to PYUSD and expand their global payment options."

With this integration, BVNK customers can establish PYUSD wallets, make payments to suppliers, contractors, and employees worldwide, and accept consumer payments in PYUSD through BVNK's API, hosted payments page, or merchant portal. Additionally, they can settle PYUSD into fiat currencies such as EUR and GBP.

Stablecoins have emerged as one of the fastest-growing segments within the cryptocurrency market. Despite their relatively short existence, stablecoins settled over 7 trillion dollars on blockchains in 2023. The number of monthly active stablecoin users has witnessed a surge, reaching 27.5 million unique users and 47 million active wallet addresses by April 2024.

Currently, stablecoins represent approximately 70% of transactions on the blockchain, surpassing established digital currencies like Bitcoin. At the end of April, the total market capitalization of stablecoins reached $160 billion, marking a significant milestone and the highest market cap since September 2022.

PYUSD operates on the Ethereum blockchain as an ERC-20 token. Since its launch in August 2023, PYUSD has garnered significant traction, with approximately 11 million people trading it within its first six weeks. As of April 2024, it boasts a market capitalization of $320 million.

Unlike traditional stablecoins, PYUSD represents a new generation. Paxos Trust Company, supervised by the NYDFS, issues PYUSD, which is fully backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents. It can be redeemed 1:1 for US dollars, providing stability and assurance to users.

It is crucial to recognize the potential counterparty risk associated with stablecoins. In the event of an insolvency, assets may become inaccessible, and stablecoin value is not guaranteed. It is advised to familiarize oneself with stablecoin risks before making investment decisions.

About BVNK:

BVNK is a leading payments infrastructure provider that empowers businesses to operate seamlessly across banks and blockchains. Its platform offers a comprehensive suite of services, including global payments, foreign exchange, and custody solutions, tailored to meet the evolving needs of businesses in the digital age. BVNK is committed to innovation and collaboration, partnering with industry leaders to drive the future of payments.

About Paxos:

Paxos is a regulated financial institution that bridges the gap between traditional finance and digital assets. Its mission is to create a more open, inclusive, and equitable financial system. Paxos operates under the supervision of the NYDFS and offers a range of products and services, including the issuance and settlement of stablecoins, custody solutions, and trading infrastructure for digital assets.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future expectations, plans, or intentions and are not statements of historical fact. These statements can be identified by terms such as "may," "will," "should," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other words of similar meaning. These forward-looking statements are based on management's current expectations and assumptions about future events and are subject to uncertainties and risks that could cause actual results to differ materially from those contained in the forward-looking statements.

Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to: the volatility of the digital currency market; changes in the regulatory landscape; the occurrence of cyberattacks or other security breaches; the occurrence of force majeure events; and the ability to attract and retain qualified personnel.

Forward-looking statements speak only as of the date of this press release, and neither BVNK nor Paxos undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.