Singapore-based payments company Triple-A has recently announced plans to integrate PayPal’s stablecoin, PYUSD, into its list of supported tokens for customer payments. This move comes as a significant step for PayPal’s PYUSD, which is aimed at challenging its crypto rivals. Triple-A, as the first licensed crypto payments firm in Singapore, aims to introduce support for PYUSD by the end of June. Currently, the company offers payment services primarily in Bitcoin, Ether, and stablecoins issued by Tether and Circle. Triple-A, backed by Peak XV Partners, saw a threefold increase in payment volumes between 2022 and 2023 and aims to double its payment volumes by the end of 2024.
PYUSD was launched by PayPal Holdings Inc. in August 2023 and is backed by crypto startup Paxos Trust Co. With a circulating supply of just over $200 million compared to Tether’s dominant USDT with $110 billion in circulation, PYUSD aims to maintain a price close to that of the US dollar. Triple-A’s founder and CEO, Eric Barbier, believes that PayPal’s influence can make PYUSD available to a vast number of consumers, which gives it a strong potential to become a dominant stablecoin in the market. 60% of Triple-A’s total payment volumes are in stablecoins, with USDT being the primary contributor, demonstrating the increasing popularity and use of stablecoins as bridge currencies between cryptocurrencies and traditional cash.
In response to the growing popularity and use of stablecoins, Senators Cynthia Lummis and Kirsten Gillibrand have introduced a new bill aimed at regulating stablecoins in the United States. The proposed legislation focuses on defining how stablecoins will operate within the country, requiring stablecoin issuers to adhere to reserve and operational requirements, including the creation of subsidiaries dedicated to issuing stablecoins. Issuers would also need to deal exclusively in dollar-backed tokens. Despite slow progress, stablecoin legislation has been viewed as the most likely form of crypto-specific legislation to pass in the US. Representatives Patrick McHenry and Maxine Waters have been working on stablecoin legislation for years, with a bill advancing out of committee last year, but its progress halted after a leadership change.
Triple-A’s decision to integrate PYUSD into its payment options signals a growing acceptance and adoption of stablecoins in the cryptocurrency market. With PayPal’s influence and reach, PYUSD has the potential to challenge established stablecoins like Tether’s USDT. The move also reflects Triple-A’s growth as a licensed crypto payments firm in Singapore, with plans to double its payment volumes by the end of 2024. The introduction of new legislation to regulate stablecoins in the US highlights the increasing scrutiny and oversight on the use of stablecoins in the financial sector, with requirements for issuers to adhere to specific operational and reserve standards. Despite challenges, stablecoin legislation has been considered the most likely form of crypto-related legislation to pass in the US, indicating a shift towards greater regulation and oversight in the crypto market.
