PayPal USD

PayPal USD (PYUSD) is a US dollar stablecoin issued by Paxos Trust Company and associated with PayPal's move into digital payments. Each token is intended to hold a value of one dollar and is redeemable 1:1, making PYUSD a tool for payments and settlement rather than a bet on price.

What is PayPal USD?

PYUSD is a fiat-backed stablecoin that brings a familiar payments brand onto public blockchains. Its aim is to let users move dollars on-chain with the speed and programmability of crypto while keeping value steady. The connection to PayPal's large user base is what distinguishes it from purely crypto-native stablecoins.

How does PayPal USD work?

Stability comes from full backing rather than any consensus mechanism. PYUSD is described as 100% backed by US dollar deposits, short-term US Treasuries and similar cash equivalents held by the issuer. When users buy PYUSD, matching reserves back the new tokens; when they redeem, tokens are removed and dollars returned. Paxos, a regulated trust company, handles issuance and reserve management.

PayPal USD tokenomics and supply

As with any stablecoin, PYUSD has no fixed supply cap. The roughly 2.86 billion tokens outstanding reflect current demand and shift as users mint and redeem. There is no scarcity narrative here; the value proposition is a dependable peg and easy convertibility back to dollars, not supply-driven appreciation.

What is PayPal USD used for?

PYUSD is aimed at everyday and on-chain dollar use:

• Peer-to-peer payments and transfers within supported apps
• Settlement and a stable trading pair across chains like Ethereum, Solana and Arbitrum
• Bridging between traditional PayPal balances and blockchain applications

Where to buy and store PYUSD

PYUSD is available through PayPal's own products and a range of exchanges; our best crypto exchanges ranking can help you find venues that list it. To self-custody, use a wallet that supports the network you hold PYUSD on, several of which are covered in our best crypto wallets guide.

Is PayPal USD a good investment?

A stablecoin is meant to preserve value, not grow it, so the sensible questions are about reserve quality and issuer strength rather than upside. Backing by dollars and short-term Treasuries and issuance by a regulated trust are reassuring, but stablecoins still carry peg and counterparty risk. This is educational content, not financial advice.