The Circle has launched the USDC stablecoin in 2018, based on Ethereum and backed by a reserve of US dollars. It is mainly used on the Circle platform and can be exchanged and transferred with other cryptocurrencies. Similarly, PayPal has introduced the PYUSD stablecoin in partnership with Paxos, also built on the Ethereum blockchain, for use on the PayPal platform and Venmo, and can be exchanged and transferred with other cryptocurrencies.
Author: Uptick / Source: https://medium.uptick.co/paypals-pyusd-vs-circle-s-usdc-4765
Translation: Huohuo / Plain Language Blockchain
PayPal recently announced the launch of its own stablecoin PayPal USD (PYUSD), which is developed in partnership with Paxos on the Ethereum blockchain. The stablecoin will be primarily used on the PayPal platform and its social payment service Venmo. One of the main features of PYUSD is that it can be converted with other cryptocurrencies offered on the PayPal platform and can also be transferred to PayPal or external accounts.
In contrast, Circle has been offering its stablecoin USD Coin (USDC) since 2018. Similar to PYUSD, USDC is built on the Ethereum blockchain and is fully backed by the US dollars held in the reserve account. The design purpose of USDC is primarily for use on the Circle platform, and it can also be converted with other cryptocurrencies offered on the Circle platform and transferred to Circle or external accounts.
1. Development Differences
One of the main differences between PYUSD and USDC is their development. PYUSD is developed in partnership with Paxos, while USDC is developed by Circle. Both companies are well-known in the cryptocurrency field and have been in existence for many years, but their stablecoin development methods are slightly different. For example, PYUSD intends to release monthly public attestations by independent third-party accounting firms in accordance with the standards set by the American Institute of Certified Public Accountants (AICPA). This contrasts sharply with USDC, which undergoes regular audits by independent accounting firm Grant Thornton, LLP, to verify whether the circulating USDC token quantity is fully supported by the corresponding amount of US dollar reserves.
Another difference between PYUSD and USDC is their intended use. PYUSD is primarily designed for the PayPal platform and Venmo, while USDC is primarily designed for the Circle platform. This means that PYUSD may be more attractive to PayPal and Venmo users, while USDC may be more attractive to Circle users.
2. How Stable Are These Stablecoins?
In terms of stability, PYUSD and USDC are both designed as stablecoins, which means they are pegged to the US dollar and maintain stable value over time. This is achieved by holding the corresponding amount of US dollars in the reserve account to support each token. However, it is worth noting that stablecoins are not immune to price fluctuations and may face the same risks as other cryptocurrencies.
Overall, PYUSD and USDC are both Ethereum-based stablecoins, fully backed by the US dollar, and use smart contracts that allow freezing and seizing of tokens. However, there are some differences in their development, auditing, and intended use, which may make one more attractive than the other depending on the user's needs. For example, PYUSD's partnership with Paxos and monthly public attestations may make it more attractive to users concerned with transparency and accountability, while USDC's regular audits by independent accounting firms may make it more attractive to users prioritizing stability and security.
3. Transparency and Regulation
PYUSD and USD Coin are both regulated by financial authorities. For example, PYUSD is regulated by the New York State Department of Financial Services (NYDFS), and USD Coin is regulated by the US Department of the Treasury. This means that both stablecoins must adhere to certain regulations and guidelines to ensure transparency and security.
4. Fees and Transaction Speed
One of the main advantages of stablecoins compared to traditional payment methods is low fees and fast transaction speeds. Compared to traditional payment methods, the transaction fees for PYUSD and USD Coin are relatively low. However, USD Coin has slightly faster transaction speed compared to PYUSD. This may be an important factor for users who require fast transaction times.
5. Conclusion
In conclusion, stablecoins are becoming an increasingly popular choice for those who want to hold cryptocurrencies without being affected by price fluctuations of other cryptocurrencies. PYUSD and USDC are both designed to provide long-term stable value and can be easily traded on their respective platforms. As with any investment, it is important for users to conduct their own research and consider their needs and risk tolerance before deciding which stablecoin to use.
PYUSD:
— Developed in partnership with Paxos
— Built on the Ethereum blockchain
— Fully backed by deposits of US dollars, US Treasury securities, and other cash equivalents
— Smart contracts allow freezing and seizing of tokens
— Intends to release monthly public attestations by independent third-party accounting firms in accordance with the standards set by the American Institute of Certified Public Accountants (AICPA)
— Can be converted with other cryptocurrencies offered on the PayPal platform
— Can be transferred to PayPal or external accounts
— Venmo, a social media payment service under PayPal, will also adopt the new stablecoin
USDC:
— Developed by Circle
— Built on the Ethereum blockchain
— Fully backed by the US dollars held in the reserve account
— Smart contracts allow freezing and seizing of tokens
— Undergoes regular audits by independent accounting firm Grant Thornton, LLP, to verify whether the circulating USDC token quantity is fully supported by the corresponding amount of US dollar reserves
— Can be converted with other cryptocurrencies offered on the Circle platform
— Can be transferred to Circle or external accounts
— Currently has a market value of $26.47 billion
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
