Stock illustration: Digital movement

PayPal Holdings Inc. is rolling out a stablecoin, the first by a large financial company and a potentially significant boost to the sluggish adoption of digital tokens for payments.

The PayPal USD (PYUSD) stablecoin will be issued by Paxos Trust Co. and fully backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents, the San Jose, California-based payments company said on Monday. It's pegged to the dollar and will gradually become available to PayPal's customers in the United States.

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