What Is PYUSD? PayPal’s New Stablecoin — and Where to Get It

PayPal has launched its own cryptocurrency: the PYUSD stablecoin. In this article, learn about its uses and tokenomics, plus how to trade it.

Sep 08, 2023

What Is Pyusd

Key Takeaways:

  • PYUSD is a US dollar–pegged stablecoin designed for digital payments and Web3 environments.
  • It aims to connect fiat and digital currencies, potentially transforming global payments through PayPal’s extensive merchant network.
  • PYUSD is fully backed by US dollar deposits like short-term US Treasury bonds and similar cash equivalents, and can be redeemed 1-to-1 for US dollars on PayPal.
  • Learn how to trade and buy PYUSD on Crypto.com.

What Is a Stablecoin?

Before diving into PYUSD, let’s first understand the concept of stablecoins, which are a type of cryptocurrency designed to have a stable value, unlike other cryptocurrencies, such as Bitcoin and Ethereum, which are known for their price volatility. The value of a stablecoin is typically pegged to a fiat currency like the US dollar.

Stablecoins like PYUSD aim to provide a measure of stability and reliability to traders in the crypto market. They may offer a way to mitigate the risks associated with the price fluctuations of other cryptocurrencies, making them a popular choice for those who want to trade or hold digital assets without being exposed to constant severe volatility.

For more on stablecoins, read What Are Stablecoins and How Do They Work?

What Is PYUSD?

Designed for digital payments and Web3 environments, PayPal USD (PYUSD) is a US dollar–pegged stablecoin launched by the global payment services provider PayPal. As a stablecoin, it is designed to have a steady value over time, relative to the US dollar. However, unlike other stablecoins, such as USDT and USDC, PYUSD is subject to regulatory oversight by the New York Department of Financial Services (NYDFS).

Issued by Paxos Trust Company, PYUSD is a potential step forward for bridging decentralised finance (DeFi) and traditional finance (TradFi). As a unique hybrid, it offers the decentralised benefits of digital currencies with the stability of traditional fiat currency. In user terms, PYUSD aims to provide inclusive, broad access to the financial system, enabling fast and efficient money movement. It is available to consumers, merchants, and developers hoping to seamlessly connect fiat and digital currencies. 

What Can PYUSD Be Used For?

Currently, eligible US PayPal users can: 

  • Transfer PYUSD between PayPal and compatible external wallets. 
  • Send person-to-person payments using PYUSD. 
  • Fund purchases with PYUSD by selecting it at checkout.
  • Convert any of PayPal’s supported cryptocurrencies to and from PYUSD.

In terms of its roadmap, PayPal announced that PYUSD will be seamlessly integrated within its network and eventually Venmo. Additionally, all cryptocurrencies that PayPal supports to date can be converted to and from PYUSD, allowing users to move liquidity from their crypto portfolio to stablecoins without leaving the app. In other words, PYUSD could become a facilitator of global payments, leveraging PayPal’s existing network of 29 million merchants.

PYUSD is also programmable, so it offers developers a functional digital currency that can be built into public blockchains, which can potentially help link the traditional economy and Web3. 

What Network Is PYUSD Native To? 

PYUSD was launched by PayPal, but as an ERC-20 token, it is issued on the Ethereum blockchain. As the only stablecoin supported within the PayPal network, PYUSD leverages PayPal’s decades-long experience in payments at scale. Working as a bridge between traditional, real-world payments and the crypto space, it combines its TradFi-established payment network with the speed, cost, and programmability of blockchain protocols.

PYUSD Tokenomics

Paxos has officially announced the contract address of PYUSD, which, per Crypto.com Price, has a total supply of 43.3 million (at the time of writing). Unlike many other stablecoins, PYUSD is backed by US dollar deposits and other cash equivalents, which offer more stability and reliable off-ramps than other common backing methods for stablecoins like commercial paper or commodities. 

Paxos also announced that, starting in September 2023, it will publish a monthly PYUSD Reserve Report and facilitate third-party audits of reserves conducted in accordance with American Institute of Certified Public Accountants (AICPA) standards.

How to Trade PYUSD

PYUSD is listed in the Crypto.com App with the growing list of 250-plus supported cryptocurrencies and stablecoins, including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), USD Coin (USDC), and Cronos (CRO). Crypto.com App users can now purchase PYUSD with USD, EUR, GBP, and 20-plus other fiat currencies and spend it at over 80 million merchants globally using the Crypto.com Visa Card.

Alternatively, users can also trade PYUSD on the Crypto.com Exchange. To start trading PYUSD today, download the Crypto.com App.


PayPal’s introduction of its PayPal USD (PYUSD) token goes beyond launching another stablecoin onto the crypto market. It is a significant step towards the future of digital currencies. By adhering to regulatory standards and utilising its existing TradFi infrastructure, PayPal is positioned to formally introduce crypto into the global payment ecosystem.

Due Diligence and Do Your Own Research

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