PayPal USD (PYUSD)
PayPal USD (PYUSD) is a stablecoin introduced by PayPal, with issuance by Paxos. It is entirely backed by U.S. dollar deposits, U.S. Treasuries, and other cash equivalents.
Overview
PayPal launched PayPal USD in August 2023, offering various functionalities. These include the ability for PYUSD to be transferred to compatible crypto wallets, both within PayPal Wallets and externally. Customers can also use PYUSD to purchase goods, with automatic conversion to fiat currency at the point of sale. Additionally, PYUSD enables the purchase and sale of any supported currencies by PayPal.
| Ticker | PYUSD |
| Category | Stablecoins |
| Website | https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd |
| @PayPal | |
| Contract Addresses | |
|---|---|
| ethereum | 0x6c...e8 Copied! |
| solana | 2b...XoCopied! |
Dan Schulman, president and CEO of PayPal, highlighted the need for a stable instrument that is digitally native and easily connected to fiat currencies like the U.S. dollar. PYUSD is an ERC-20 token, which ensures compatibility with Ethereum. This token can be integrated by external developers, wallets, and Web3 applications, and is designed to enhance experiences within the PayPal ecosystem.
In September 2023, Paxos began releasing a monthly Reserve Report for PYUSD, detailing the components of the stablecoin’s reserves. This transparency is supported by third-party validation of PayPal USD's reserve holdings, conducted by an impartial accounting firm following the standards set by the American Institute of Certified Public Accountants.
Use cases
Some of the use cases for PayPal USD include international transactions, secure transactions, online shopping, freelancing and e-commerce, and financial management.