PYUSD

PYUSD (PayPal USD) is a stablecoin issued by PayPal in partnership with Paxos Trust Company, launched in August 2023. It's designed to enable payments, transfers, and conversions within the PayPal ecosystem and beyond.

How It Works

PYUSD is issued by Paxos on behalf of PayPal and is backed by US Dollar deposits, short-term US Treasury securities, and similar cash equivalents. Each PYUSD token is redeemable 1:1 for US Dollars.

Key Features

• PayPal Integration: Native integration with PayPal and Venmo for easy transfers and payments
• Regulated Issuance: Issued by Paxos, a NYDFS-regulated trust company
• ERC-20 Standard: Built on Ethereum, enabling use in DeFi applications
• Full Backing: Backed by highly liquid assets with monthly attestations
• Mainstream Adoption: Brings stablecoins to PayPal's 400+ million users

Why It Matters

PYUSD represents a major step in mainstream stablecoin adoption. With PayPal's massive user base and established payment infrastructure, it bridges traditional finance and cryptocurrency, making stablecoins accessible to everyday consumers.

Use Cases

• Peer-to-peer transfers within PayPal and Venmo
• Online purchases with merchants accepting cryptocurrency
• International payments and remittances
• DeFi applications on Ethereum
• Converting between crypto and fiat within PayPal

Regulatory Considerations

PYUSD benefits from Paxos's regulatory standing while operating within PayPal's existing financial infrastructure, subjecting it to traditional banking and money transmission regulations.