Issuer explainer

What Is PYUSD?

PayPal USD (PYUSD) is PayPal's dollar stablecoin, issued by Paxos. Here is how it works, how it is backed, and where it runs, with live market data.

PYUSD (PayPal USD) is a U.S. dollar stablecoin launched by PayPal in August 2023 and issued by Paxos Trust Company, a regulated New York trust. Each token is meant to hold a value of one dollar and is redeemable 1:1.

It is one of the first dollar stablecoins from a mainstream consumer payments company, putting on-chain dollars directly inside PayPal and Venmo. Since March 2026 it has been available in PayPal accounts across 70 markets.

How PYUSD is backed

Paxos holds the reserves and publishes monthly attestations. Reserves are held in U.S. dollar deposits, short-dated U.S. Treasuries, and cash equivalents so holders can redeem at par. Paxos is supervised by the NYDFS.

PYUSD rewards

PayPal pays 4% annual rewards on PYUSD held in the PayPal app (rate as of October 2026, variable and set by PayPal). Rewards accrue daily on your average balance and are paid monthly in PYUSD. You need to opt in and hold at least 1 PYUSD.

Since August 2026, U.S. merchants can also settle part of their PayPal balance into PYUSD automatically and earn the same rate. Rewards are not available in every market; PayPal excludes users in the UK and Singapore.

These rewards are paid by PayPal, not the issuer. The pending CLARITY Act would restrict rewards that work like deposit interest, so this is a feature to watch.

Chains and availability

PYUSD launched as an ERC-20 token on Ethereum and later expanded to Solana for faster, cheaper transfers, with the issuer continuing to add networks.

What PYUSD is used for

  • Payments and transfers across PayPal and Venmo
  • Merchant settlement and cross-border payouts
  • An on and off ramp between fiat and crypto
  • Holding dollars on-chain with 24/7 settlement

Market data from CoinGecko, refreshed on each deploy. Editorial details per issuer disclosures. Not investment advice.

FAQ

PYUSD, answered

What is PYUSD?

PYUSD (PayPal USD) is a U.S. dollar stablecoin launched by PayPal in August 2023 and issued by Paxos Trust Company. It is designed to be redeemable 1:1 for a dollar and is backed by dollar deposits, short-term U.S. Treasuries, and cash equivalents.

Who issues PYUSD?

PYUSD is issued by Paxos Trust Company, regulated by the New York State Department of Financial Services (NYDFS). PayPal is the brand and distribution partner; Paxos holds the reserves and manages issuance and redemption.

Is PYUSD safe and backed?

PYUSD is fully reserve-backed with monthly attestations published by Paxos. As with any stablecoin, residual risks include issuer and reserve quality, redemption liquidity, and smart-contract risk.

What blockchains is PYUSD on?

PYUSD launched as an ERC-20 token on Ethereum and later expanded to Solana, with more networks added over time to lower fees and broaden access.

How much does PayPal pay on PYUSD?

PayPal pays 4% annual rewards on PYUSD held in the PayPal app, as of October 2026. The rate is variable and set by PayPal. Rewards accrue daily and are paid monthly in PYUSD; you must opt in and hold at least 1 PYUSD. They are not available in the UK or Singapore.