PayPal USD | Trading Non Stop

What is PYUSD?

PayPal USD (PYUSD) is a regulated stablecoin issued by Paxos, pegged 1:1 to the US dollar. It’s designed to connect traditional finance with blockchain technology in a simple and secure way.

Stable & Fully Backed: Each PYUSD token is backed by cash, U.S. Treasury securities, and similar assets.
Works Across Multiple Blockchains: Available on Ethereum, Solana, Arbitrum, and more, enabling fast and low-cost transactions.
Built Into PayPal and Venmo: You can use PYUSD for payments, sending money, and decentralized finance (DeFi) activities.

Deep Dive

1. Purpose & Value

PYUSD provides a stable digital dollar that’s easy to use for everyday payments and new blockchain-based applications. It leverages PayPal’s large network of 435 million users and combines it with blockchain’s ability to move money quickly and globally. The reserves backing PYUSD are audited monthly by WithumSmith+Brown, ensuring transparency and trust (PayPal). This makes PYUSD a good option for people who want the stability of the U.S. dollar without the ups and downs of typical cryptocurrencies.

2. Technology & How It Works

PYUSD started as an ERC-20 token on the Ethereum blockchain. In 2024, it expanded to Solana and later to other blockchains like Arbitrum, Stellar, and Tron using LayerZero’s cross-chain technology (CobakOfficial). This multi-chain setup means transactions can be much cheaper and faster—for example, sending PYUSD on Solana can cost just a fraction of a cent, compared to a few dollars on Ethereum. This is especially important for small payments and DeFi services.

3. How PYUSD Is Used

Payments: Send money to friends, pay merchants, or make international transfers using PayPal or Venmo.
DeFi: Use PYUSD with platforms like Ondo Finance to quickly convert it into tokenized U.S. Treasuries (Ondo Finance).
Earnings: Hold PYUSD in your PayPal wallet and earn a variable interest rate—currently around 3.7% annually as of 2025.

Conclusion

PYUSD combines PayPal’s trusted reputation with the speed and flexibility of blockchain technology. It offers a regulated, stable digital dollar that appeals to both everyday users and crypto enthusiasts. As PYUSD expands to more blockchains like TRON and Avalanche, it will be interesting to see if its multi-chain approach can outpace competitors like USDC in connecting traditional finance with decentralized finance.