PayPal just recently offered a US dollar backed stablecoin called PYUSD. The product offering is a responsive move which seemingly attempts to take part in the growing and potential for payment transformations in the Web3 era.

Huge demand for stablecoin options

They have suggested that the function purpose of the PYUSD is to reduce friction when it comes to the experiences that customers are going to have with their platform.

Make things more convenient for users

With PYUSD the idea is that there would be a more seamless exchange with the platform which reduces any friction there might have been beforehand. It is also going to be redeemable for dollars. The product is trying to offer the stability that many are seeking while still addressing that growing need and demand for digital currencies etc. This isn't unexpected as demand has grown and it's anticipated that many more products will similarly be introduced to address needs in this space from demand and more use cases to stability as well.

*This is not to be taken as financial advice, this has been posted for information purposes only."
Sources:
https://www.cnbc.com/2023/08/07/paypal-launches-first-dollar-backed-stablecoin-from-a-major-us-financial-institution.html
https://finance.yahoo.com/video/paypal-launches-own-u-dollar-193419913.html
https://www.bloomberg.com/news/articles/2023-08-07/paypal-launches-us-dollar-stablecoin-pyusd-for-payments-transfers