PayPal USD, also known as PYUSD, is a stablecoin created by PayPal. It is designed to always be worth one US dollar. PYUSD is backed by real-world assets such as US dollar deposits and US government bonds.
PYUSD is built to be easily used in the world of decentralised finance. You can send it to anyone with a crypto wallet, use it in smart contracts, or store it just like any other Ethereum-based asset.
PayPal launched PYUSD to give its users a simple and familiar way to explore digital payments. By digitising the US dollar in a way that’s decentralised, PYUSD aims to make it easier to move money across borders, access digital assets, and interact with Web3 apps.
What makes PYUSD different from other stablecoins?
PYUSD is one of the first stablecoins issued by a major global payments company. It is issued by Paxos Trust Company, which is regulated by the New York State Department of Financial Services. This means PYUSD is held to strict standards around transparency and safety.
Monthly reports show the exact reserves backing every PYUSD token, and these reports are reviewed by an independent accounting firm. This level of oversight gives users more confidence that each PYUSD token is truly backed by assets.
It also benefits from PayPal’s wide user base, meaning it may become more useful in everyday payments, not just within the crypto community.
What is PYUSD used for?
PYUSD can be used in a few different ways. You can hold it as a way to store value because the Dollar is historically one of the world’s more stable currencies, especially during times of market volatility. You can also use it to send money across borders quickly and at low cost, without relying on traditional banks.
Because it runs on Ethereum, developers can also integrate PYUSD into decentralised apps. This makes it useful for peer-to-peer payments, smart contracts, and Web3 wallets.
Tip
Keen to explore PayPal USD a bit more? You can learn about PYUSD basics and get all the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send, or receive PYUSD? We’ve got answers in the following help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.