PayPal USD | Trading Non Stop

What is PYUSD?

PayPal USD (PYUSD) is a regulated stablecoin backed 1:1 by U.S. dollars, designed to connect traditional finance with blockchain technology. It offers fast transactions, works across multiple blockchain networks, and integrates with PayPal’s platform, which has over 434 million users.

Stable value: Each PYUSD token is backed by an equal amount of U.S. dollars or cash equivalents.
Works on multiple blockchains: Available on Ethereum, Solana, Arbitrum, Stellar, and Tron.
Real-world uses: Can be used for payments, sending money internationally, and merchant transactions.

Deep Dive

1. Purpose & Value

PYUSD aims to make digital payments easier by combining PayPal’s trusted reputation with the speed and efficiency of blockchain technology. It acts as a stable digital currency for everyday uses like cross-border payments and merchant settlements. Users can also earn rewards by holding PYUSD balances. Because it’s integrated with PayPal and Venmo, users can easily convert PYUSD to and from U.S. dollars, helping protect them from the price swings common in other cryptocurrencies (PayPal).

2. Technology & How It Works

PYUSD is issued as an ERC-20 token on Ethereum and as an SPL token on Solana. It has recently expanded to Layer 2 networks like Arbitrum and to cost-effective blockchains like Stellar. Using LayerZero’s cross-chain technology, PYUSD0 (a version without restrictions) can move freely across more than 140 blockchains, including Tron and Avalanche. This makes PYUSD more accessible and liquid for decentralized apps and users (TRON DAO).

3. Token Backing & Transparency

PYUSD is managed by Paxos Trust Company and regulated by New York State authorities. Its reserves include cash, short-term U.S. Treasury securities, and similar assets. To maintain transparency, monthly audits are conducted by WithumSmith+Brown. PYUSD holders on PayPal and Venmo can earn up to 4% annual rewards, encouraging more people to use and hold the stablecoin (CoinMarketCap).

Conclusion

PYUSD combines PayPal’s established payment system with blockchain’s global reach, focusing on stability, regulatory compliance, and flexibility across multiple blockchains. As it grows to include networks like Tron and Stellar, its ability to work seamlessly across platforms could help it gain wider acceptance in both traditional finance and decentralized finance (DeFi).