Tether CTO Highlights Potential Competition Erosion for USDT by PayPal's PYUSD in the United States: Report
According to Tether CTO Paolo Ardoino, the recently launched stablecoin PYUSD by PayPal has the potential to impact the competitive landscape of USDT in the United States.
In a recent interview with Benzinga, Ardoino emphasized that he doesn't perceive PYUSD as a direct competitor to Tether. Instead, he sees it as a challenge for stablecoin rivals like Circle's USD Coin (USDC).
According to Ardoino, PYUSD could pose a challenge specifically to USDC and other US-oriented stablecoins that heavily rely on the American market. Tether, on the other hand, predominantly focuses on emerging markets outside the United States.
He stated, "It's interesting. Another stablecoin in the U.S. It could lead to the erosion of revenues for payments that have been mainly fueling MasterCard and Visa. It will also help the industry to grow further and push for sensible regulations… It might mean an additional decline of our competition that is very much focused on the U.S."
PayPal recently introduced PYUSD, a stablecoin backed by US dollar deposits, short-term US treasuries, and similar cash equivalents. The stablecoin can be redeemed 1:1 for US dollars and will be issued by crypto firm Paxos, as mentioned in a PayPal blog post.
"PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world. Most of the current volume of stablecoins is used in web3-specific environments – PayPal USD will be compatible with that ecosystem from day one and will soon be available on Venmo."
Aug 10, 2023
