PayPal USD is designed to contribute to the opportunity stablecoins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents. PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company.

PayPal USD, also known as PYUSD, represents a significant advancement in the realm of digital currencies, being a stablecoin that maintains a 1:1 value ratio with the US dollar. This digital currency is designed to offer a stable medium of exchange, making it an appealing option for users seeking to avoid the volatility often associated with cryptocurrencies. Issued by Paxos Trust Company, LLC, PYUSD is regulated and fully backed by US dollar deposits, US Treasuries, and similar cash equivalents, ensuring its value is consistently pegged to the US dollar.

The regulatory framework surrounding PYUSD is robust, with oversight from the New York State Department of Financial Services. This ensures a high level of transparency and security for users, as the reserves backing the stablecoin are held entirely in cash or cash equivalents. Furthermore, the monthly publication of reserve reports and attestations by an independent third-party accounting firm, WithumSmith+Brown, PC, provides an additional layer of trust and reliability, affirming that customer funds are available for redemption on a 1:1 basis with Paxos.Operating on the Ethereum blockchain, PYUSD leverages the benefits of stablecoins by offering a digital currency that remains stable over time, relative to the US dollar. This stability is crucial for facilitating inclusive access to the financial system, enabling fast and efficient money movement, and serving as a bridge between traditional financial systems and the emerging Web3 space. The programmability of PYUSD also opens up new possibilities for developers, allowing for the integration of this stablecoin into various blockchain-based applications and services.In the broader context of digital payments, PayPal's introduction of PYUSD underscores the company's commitment to innovation and its role in shaping the future of finance. By combining the convenience and security of PayPal's platform with the flexibility and efficiency of blockchain technology, PYUSD represents a forward-thinking solution that aligns with the evolving needs of consumers and merchants globally.