Tonight, PayPal made a groundbreaking announcement by introducing its USD stablecoin, PayPal USD (PYUSD), designed for seamless transfers and payments. Issued by Paxos Trust Company, PYUSD is fully backed by 100% reserves comprising dollar deposits, short-term U.S. Treasury securities, and similar cash equivalents.
Starting today, PYUSD will roll out gradually over the coming weeks. Eligible U.S. PayPal customers can:
- Transfer PYUSD between PayPal and compatible external wallets
- Use PYUSD for peer-to-peer payments
- Select PYUSD at checkout
- Convert supported cryptocurrencies to/from PYUSD
As Dan Schulman, PayPal’s President and CEO, emphasized: "The shift toward digital currencies demands a stable instrument—both natively digital and easily connected to fiat currencies like the USD."
Bridging Fiat and Web3 for Consumers, Merchants, and Developers
PayPal USD aims to seamlessly connect fiat and digital currencies for all users. As PayPal’s exclusive supported stablecoin, PYUSD leverages decades of payment expertise while harnessing blockchain’s efficiency, cost-effectiveness, and programmability.
Key features:
- ERC-20 Token: Issued on Ethereum, PYUSD is accessible to external developers, wallets, and Web3 apps.
- Enhanced Ecosystem: Designed to reduce friction in virtual payments, enable remittances, and streamline direct payouts to creators.
- Venmo Integration: Coming soon.
Dollar-Denominated, Redeemable, and Transparent
Issuer & Regulation:
- Issued by Paxos Trust Company, a fully licensed entity regulated by the NYDFS.
- Paxos holds a BitLicense, granted in 2022 after conditional approval.
Reserves & Redemption:
- Backed 100% by USD deposits, U.S. Treasuries, and cash equivalents.
- Redeemable at 1:1 via PayPal.
Transparency:
- Monthly reserve reports (starting September 2023).
- Independent third-party attestations per AICPA standards.
Advancing Digital Currency Education and Adoption
Beyond product innovation, PayPal prioritizes:
- Education: Resources on cryptocurrencies, stablecoins, and CBDCs.
- Regulatory Collaboration: Working closely with policymakers as the industry evolves.
- Existing Services: U.S. users can already buy, hold, sell, and transfer major cryptocurrencies via PayPal.
FAQ
1. How is PYUSD different from other stablecoins?
PYUSD combines PayPal’s payment infrastructure with blockchain efficiency, offering a trusted, regulated option backed by transparent reserves.
2. Can non-U.S. users access PYUSD?
Currently, PYUSD is available only to eligible U.S. PayPal customers, with potential expansions hinted.
3. What are PYUSD’s use cases?
Peer-to-peer payments, remittances, checkout payments, and Web3 integrations.
4. How does PayPal ensure PYUSD’s stability?
Monthly audits and third-party attestations guarantee 1:1 USD backing.
5. Will PYUSD be listed on exchanges?
Yes, its ERC-20 design enables easy exchange integration.
6. Is PYUSD available on Venmo?
👉 PYUSD will launch on Venmo soon.
👉 Learn more about stablecoin innovations and how PYUSD could reshape digital payments.