Cap, a stablecoin protocol with credible financial guarantees, is excited to announce the establishment of the Cap Stablecoin Network with PayPal’s PYUSD as an initial collateral partner and base strategy.

The Cap Stablecoin Network (CSN) is an open network for cUSD’s collateral management and yield generation. CSN facilitates instant, secure and low-cost exchanges between collateral assets. Assets used for yield generation are fully protected with transparent onchain guarantees.

Holders of PayPal’s PYUSD will now be able to mint cUSD (Cap’s digital dollar) and swap for other dollar assets in Cap’s Stablecoin Network. US Treasury bill yield from PYUSD will contribute to stcUSD’s minimum yield. PYUSD will serve as a blueprint for future collateral partners joining the CSN.

About Cap

Cap is a stablecoin protocol that provides credible financial guarantees via two products: the dollar-denominated cUSD and the yield-bearing stcUSD.

cUSD

cUSD is a digital dollar issued on the Ethereum blockchain that can be used on any blockchain. cUSD is backed by Cap’s Stablecoin Network, a network of blue chip dollar assets issued by regulated institutions with transparent attestations. It is 1:1 redeemable for any of the available reserve assets.

stcUSD

stcUSD is a savings product issued by staking cUSD. Yield is generated via an autonomous layer of regulated financial institutions, or operators, who self-select in and out based on the current hurdle rate of the protocol. The risk of yield generation is covered, meaning users have full downside protection that is verifiable by code.

About PayPal

PayPal’s PYUSD launched in 2023 and has since grown to $950 million in circulating supply. PayPal itself has over 400 million users who all potentially have access to PYUSD.

To stay tuned to news about Cap, follow our X account. You can learn more about Cap through our official documentation.