PayPal USD (PYUSD), launched in August 2023, is a stablecoin pegged 1:1 to the U.S. dollar, issued by Paxos Trust Company and built on Ethereum and Solana blockchains. Designed to facilitate seamless digital payments, PYUSD is fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents.

Key Features

  • Stable Value: Maintains a 1:1 peg with the U.S. dollar, minimizing volatility for payments and transfers.
  • Cross-Chain Support: Operates on Ethereum and Solana, enabling fast, low-cost transactions via Solana’s high throughput.
  • Payment Integration: Supports fee-free transfers within PayPal’s U.S. ecosystem and checkouts at millions of online stores.
  • Ecosystem: Available on 40+ exchanges (e.g., Coinbase, Kraken) and 66+ markets, with wallet support like MetaMask and Phantom.

PYUSD Token

  • Purpose: Used for digital payments, transfers to Ethereum/Solana wallets, and conversions to other cryptocurrencies on PayPal.
  • Supply: ~950M PYUSD in circulation, with no fixed maximum supply due to its redeemable nature.
  • Contract Address: On Ethereum, PYUSD’s contract is 0x6c3ea9036406852006290770bedfcaba0e23a0e8 (addable to MetaMask) CoinGecko CMC.

Who Are the Founders of PYUSD?

PYUSD was launched by PayPal, a global fintech leader founded in 1998 by Peter Thiel, Elon Musk, and others. Issued by Paxos Trust Company, a regulated blockchain infrastructure provider, PYUSD leverages PayPal’s payment expertise and Paxos’s stablecoin experience. Development is supported by PayPal’s blockchain team, with no formal DAO governance.

What Makes PYUSD Unique?

PYUSD stands out in Web3:

  • Mainstream Adoption: Backed by PayPal’s 400M+ user base, PYUSD bridges traditional finance and crypto with seamless fiat-to-crypto conversions.
  • Regulatory Compliance: Regulated by the New York State Department of Financial Services, ensuring reserve transparency and 1:1 redeemability.
  • Solana Integration: Offers near-instant, low-cost transactions compared to Ethereum-based stablecoins like USDC.
  • No Transfer Fees: Fee-free transfers within PayPal’s U.S. platform, though network fees apply for external wallet transfers.

PYUSD Network Upgrades (2025)

  • Solana Expansion (May 2024): Launched on Solana for faster, cheaper transactions, boosting adoption.
  • LayerZero Integration (February 2025): Enabled cross-chain transfers between Ethereum and Solana, enhancing interoperability.
  • Merchant Checkout (June 2025): Expanded PYUSD checkout to 1M+ online merchants via PayPal’s crypto payment system.

How Is PYUSD Secured?

PYUSD is secured through:

  • Ethereum/Solana PoS: Leverages Proof-of-Stake consensus on both blockchains for transaction security.
  • Paxos Oversight: Regulated reserves are audited monthly by WithumSmith+Brown, ensuring full backing by USD and equivalents.
  • Smart Contract Audits: Regular audits by firms like CertiK maintain contract integrity.
  • Reserve Transparency: Paxos publishes monthly reserve reports, segregating funds from corporate assets to protect users.

Conclusion

PayPal USD (PYUSD) is a stablecoin bridging traditional finance and Web3, offering stable, fast, and low-cost digital payments. With a $930M market cap, 950M circulating supply, and integration across 40+ exchanges, PYUSD leverages PayPal’s vast network and Paxos’s regulatory expertise. Its cross-chain support, fee-free transfers, and merchant adoption make it a key player in mainstream crypto adoption.