PayPal USD (PYUSD) is a stablecoin designed for payments and is 100% backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents. PYUSD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company. Like other crypto assets, it can move instantaneously, anywhere in the world, at any time. It is also available to buy and sell for free on PayPal and Venmo in the US.
PYUSD is issued as a fiat-backed stablecoin on the Ethereum blockchain. Stablecoins are a type of cryptocurrency designed to have a steady value over time relative to a reference asset, for example, the U.S. dollar. They can provide inclusive, broad access to the financial system, and can enable fast and efficient money movement. Stablecoins are programmable, offering developers a useful digital currency that can be built into public blockchains and can help link the traditional economy and Web3.
PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. In June 2022, PayPal was issued a BitLicense by NYDFS after previously obtaining a conditional BitLicense. Paxos will publish a public monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves. Paxos will also publish a public third-party attestation of the value of PayPal USD reserve assets. The attestation will be issued by an independent third-party accounting firm and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA).
Place in the ecosystem:
Even in the case of PayPal or Paxos enterprise failure, customers would be able to recoup all
PYUSD funds enabled by NYDFS. PYUSD reserve assets are held FBO token holders.
Attestation reports are issued by WithumSmith+Brown, PC, an independent third-party
accounting firm. Withum’s examination is conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants (AICPA).
PayPal’s two-sided network of consumers and merchants
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy.