Author: Daniel Li, CoinVoice
As the largest payment platform in the United States, the launch of PYUSD on LianGuaiyLianGuail implies that there may be hundreds of millions of users entering the cryptocurrency market through LianGuaiyLianGuail in the future. The large number of users may bring risks of money laundering and capital flight. In this case, governments and regulatory agencies will have to pay more attention to the stablecoin industry and quickly introduce corresponding regulatory policies to balance innovation and risk.
In the wave of the digital era, traditional finance and cryptocurrencies have become the focus of people’s attention. However, there seems to be an invisible gap between these two fields, making their connection appear blurry and distant. Now, a new stablecoin called PYUSD is quickly bridging this gap and becoming a solid bridge between traditional finance and cryptocurrencies.
As the first compliant stablecoin issued by a “non-crypto” company, the emergence of PYUSD carries significant symbolic meaning. It represents the further exploration of the traditional finance industry into cryptocurrencies, and also signifies a significant shift in the attitude of enterprises towards stablecoins, indicating that the acceptance of regulatory policies is gradually increasing. In the future, this change will inevitably further promote the integration of Web3, traditional finance, and the real world. PYUSD, as a bridge connecting them, will play an important role in this process.
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PYUSD may become the “Digital Dollar” in the United States
Recently, LianGuaiyLianGuail, the American version of “Alipay,” announced the launch of PYUSD, a stablecoin pegged to the US dollar. This marks it as the first mainstream financial services company to adopt cryptocurrencies for payments and transfers. The value of PYUSD will be pegged to the US dollar on a 1:1 ratio, backed by cash deposits, US Treasury bonds, and other equivalent cash reserves.
The goal of PYUSD is to achieve instant conversion to US dollars, while also being convertible to other cryptocurrencies available on the LianGuaiyLianGuail network. To achieve this goal, LianGuaiyLianGuail plans to introduce PYUSD into its payment application Venmo, allowing users to freely send and receive tokens between LianGuaiyLianGuail and Venmo wallets. Additionally, as an ERC-20 token based on the Ethereum blockchain, PYUSD can also be transferred to third-party wallets compatible with LianGuaiyLianGuail, providing users with a wider range of choices and flexibility.
To ensure the stability and functionality of PYUSD, LianGuaiyLianGuail will first conduct payment tests among institutions and then quickly open it to US LianGuaiyLianGuail users. In the future, eligible US LianGuaiyLianGuail customers will enjoy the following rights:
Transfer PYUSD between LianGuaiyLianGuail and compatible external wallets.
Make person-to-person payments using PYUSD.
Select to use PYUSD for purchases at checkout.
Convert any cryptocurrency supported by LianGuaiyLianGuail to PYUSD and vice versa.
Buy, sell, hold PYUSD, or transfer PYUSD to eligible US LianGuaiyLianGuail balance accounts free of charge.
In addition, to increase transparency and trustworthiness, LianGuaiyLianGuail plans to release a public monthly reserve report for PYUSD starting from September, which will provide detailed information on the assets that make up its reserve. Furthermore, LianGuaiyLianGuail will also engage an independent third-party accounting firm to conduct public verification of the value of PYUSD reserve assets, following the verification standards set by the American Institute of Certified Public Accountants (AICPA), to ensure accuracy and reliability.
It is worth noting that PYUSD and its reserve assets will be subject to strict supervision by the New York Department of Financial Services (NYDFS), which means that even in the event of LianGuaixos Trust’s bankruptcy, customer assets will not be used to repay LianGuaixos’ debts. In this regard, PYUSD is already ahead of the majority of stablecoins.
According to LianGuaiyLianGuail’s future plans, PYUSD will first be launched on its payment application Venmo. This move is of great strategic significance, as LianGuaiyLianGuail has 430 million active users worldwide, and the launch of PYUSD on Venmo can rapidly expand its user base in a short period of time. Moreover, LianGuaiyLianGuail’s global leading online payment advantage can provide a solid foundation for the global promotion of PYUSD. At the same time, LianGuaiyLianGuail’s global business cooperation network will also bring PYUSD into more application scenarios, and by then PYUSD may become a globally universal “digital dollar”, widely used in daily consumption through LianGuaiyLianGuail’s payment network.
LianGuaiyLianGuail Launches PYUSD Stablecoin: Building the Future of Web3 Business Scenarios
LianGuaiyLianGuail’s stablecoin plan has been in preparation for a long time, but progress has been slow due to regulatory policy constraints. According to the PYUSD contract address disclosed by LianGuaixos, PYUSD was minted as early as November 2022, with 1.1 million coins and multiple small-scale transfer tests. Then, on February 1, 2023, an additional 26.4 million coins were minted. However, on February 23, LianGuaixos, the issuer of PYUSD, burned 25.5 million PYUSD.
The cause of this event was an investigation by the U.S. Securities and Exchange Commission (SEC) into the stablecoin BUSD issued by LianGuaixos in collaboration with Binance. The SEC believes that LianGuaixos may have issued securities without proper registration. Subsequently, the New York State Department of Financial Services (NYDFS) supervised LianGuaixos and requested the cessation of BUSD minting. This not only affected Binance and LianGuaixos but also temporarily shelved the plan for LianGuaiyLianGuail to issue PYUSD. It wasn’t until August 7th that LianGuaiyLianGuail announced the launch of the stablecoin PYUSD.
The timing of LianGuaiyLianGuail’s decision to launch the PYUSD stablecoin is very clever. After actively embracing Web3 and reaping many benefits in places like Singapore and Hong Kong, there are signs of a changing attitude in the US political sphere, indicating a desire to embrace digital assets. This trend can be seen in events such as BlackRock applying for a Bitcoin ETF and a court ruling that XRP is not a security. Changes in the regulatory environment often determine the fate of an industry, and the compliance journey of PYUSD also highlights the change in the US’s regulatory policy towards stablecoins.
It is worth mentioning that issuing stablecoins is not LianGuaiyLianGuail’s first foray into the cryptocurrency field. As early as 2014, LianGuaiyLianGuail partnered with cryptocurrency exchanges to enable Bitcoin payments. Over the years, LianGuaiyLianGuail has been continuously exploring the cryptocurrency industry. As of now, LianGuaiyLianGuail has fully realized functions such as purchasing, holding, selling, and transferring mainstream cryptocurrencies. In addition to creating products and services that increase the utility of digital currencies, LianGuaiyLianGuail is also committed to improving consumer and merchant understanding of cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs), and helping users understand relevant knowledge and risks through providing educational content.
It is apparent that LianGuaiyLianGuail’s purpose in doing this is not just to issue a stablecoin; the stablecoin is merely the foundation for achieving a larger goal. As a compliant USD stablecoin, PYUSD has the dual advantages of online payment and on-chain support. Combining LianGuaiyLianGuail’s large user base, market influence, and business cooperation network, PYUSD’s utility will surpass the scope of traditional stablecoins and have a broader range of applications. LianGuaiyLianGuail can transfer some traditional online payment scenarios to the blockchain, such as cross-border transactions and transfers. At the same time, by utilizing the advantages of on-chain payments with PYUSD, it is possible to rebuild business scenarios from the Web2 world on Web3 and leverage new advantages. It can be said that PYUSD will become an important tool for LianGuaiyLianGuail in building Web3 business scenarios in the future.
What Changes will PYUSD Bring to the Cryptocurrency Industry
The launch of PYUSD not only plays an important role in LianGuaiyLianGuail’s Web3 strategy but also has a profound impact on the entire cryptocurrency industry, mainly manifested in the following aspects:
Reviving the Stablecoin Battle
In the stablecoin market, USDT and USDC have always dominated. According to data from DefiLlama, USDT currently ranks first with a market share of 67.2%, followed closely by USDC with a market share of 20.6%. The market share of BUSD, jointly issued by LianGuaixos and Binance, is only 2.8%, ranking fourth. However, with the strong entry of PYUSD, the stablecoin market may witness a new competition.
Currently, BUSD is facing its biggest challenge as regulators have requested it to suspend minting new coins. Since PYUSD and BUSD are issued by the same issuer, once PYUSD is successfully launched, it could quickly replace BUSD’s position in the market. USDC is also affected because PYUSD has a similar customer base as USDC, and these customers are more inclined to use regulated stablecoins rather than offshore stablecoins. On the other hand, USDT is likely to be the least affected. According to The Block, Tether’s CTO, Paolo Ardoino, stated that the launch of PYUSD will not affect Tether as PYUSD only provides services in the United States, while Tether does not provide services in the United States.
However, in order for PYUSD to be competitive in the stablecoin market, the primary requirement is for PYUSD to be listed on exchanges to leverage its advantages. There is already confirmed news that Huobi has announced to be the first exchange to list PYUSD stablecoin. Once liquidity and other conditions are met, Huobi will immediately start trading and notify users through announcements. Users need to be patient and closely follow the relevant announcements.
Triggering Traditional Industries to Enter the Stablecoin Craze
LianGuaiyLianGuail’s entry into the stablecoin market may have higher strategic goals, but making money is undoubtedly its primary consideration. So, are stablecoins profitable? The answer is yes, in fact, very profitable. Stablecoin issuers have a large cash reserve and do not need to pay interest to customers. They can make a lot of money just by issuing stablecoins. It is reported that Tether, the top-ranked stablecoin company, achieved a net profit of 1.48 billion US dollars in the first quarter of this year alone, with a staff size of only over 50 people.
In the past, issuing stablecoins may have faced regulatory pressure. However, the successful launch of PYUSD stablecoin undoubtedly has allowed more traditional financial institutions to see opportunities. The model of LianGuaiyLianGuail partnering with LianGuaixos to issue stablecoins represents an important step for the mainstream financial sector to move towards cryptocurrency and blockchain technology. It is reported that institutions such as Visa, Mastercard, and Square are actively exploring the possibility of incorporating stablecoins into their product lines. If there is no significant opposition in the market, they will quickly enter this field, which will undoubtedly trigger a new wave of stablecoin craze.
Accelerating the Popularization of Cryptocurrencies
LianGuaiyLianGuail’s actions play an important role in promoting the popularization of cryptocurrencies. By launching PYUSD on Venmo, LianGuaiyLianGuail opens up the possibility of using stablecoins for daily transactions. This means that the 430 million users on LianGuaiyLianGuail have the opportunity to choose PYUSD as their daily settlement currency. They can enjoy the advantages of convenient cross-border settlements and zero transaction fees. This is very beneficial for LianGuaiyLianGuail’s users and also helps promote the development of cryptocurrencies as a legitimate payment method and facilitate their wider acceptance.
In the past, the only way to obtain stablecoins was through crypto companies like Tether, Coinbase, or Gemini. However, with the introduction of PYUSD into the market, millions of users can now enter the crypto world by using one of the widely used payment platforms globally, namely LianGuaiyLianGuail. This will provide ordinary users with a more convenient and secure way to participate in the application and development of blockchain technology.
LianGuaiyLianGuail’s initiative not only opens a door to the crypto field for traditional financial institutions but also creates a more user-friendly and accessible entry path for ordinary users. By launching PYUSD stablecoin and integrating it into the payment platform, LianGuaiyLianGuail provides strong support for the adoption and application of cryptocurrencies. This measure not only helps promote the development of blockchain technology but also further enhances the global acceptance of cryptocurrencies.
Advancing regulatory policy formulation
In late July 2023, the U.S. House Financial Services Committee approved the “Payment Stablecoin Clarity Act.” The purpose of this bill is to provide a clear regulatory framework for stablecoins and protect American investors and consumers by establishing unified standards. However, the bill has faced opposition from the Federal Reserve and the U.S. Department of the Treasury. Democrat Maxine Waters believes that the bill has serious issues and is detrimental to the United States. As of now, Congress has not passed the stablecoin bill, and various institutions are still in a game of negotiation.
In this context, the launch of PYUSD and the stablecoin frenzy it has triggered may help expedite the passage of the stablecoin bill in Congress. The introduction of PYUSD brings a sense of urgency to regulatory policies. As the largest payment platform in the United States, the launch of PYUSD on LianGuaiyLianGuail means that hundreds of millions of users may enter the crypto market through LianGuaiyLianGuail in the future. The massive number of users may bring risks of money laundering and capital flight. In this situation, the government and regulatory agencies will have to pay more attention to the stablecoin industry and promptly introduce corresponding regulatory policies to balance innovation and risk.