PayPal USD

PYUSD is PayPal's US dollar stablecoin, issued by Paxos and backed by dollar deposits and Treasuries.

PayPal USD (PYUSD) is a digital token designed to keep a stable value of one US dollar. PayPal launched it on 7 August 2023 as a token on Ethereum, and it now also runs on Solana, Arbitrum and several other networks. PayPal brands and distributes it, but the token is issued and its reserves are held by Paxos. In December 2025 the OCC conditionally approved Paxos's conversion from a New York trust company into a national trust bank; Paxos said it would complete the conversion imminently, but completion was not independently confirmed.

PYUSD has no fixed supply. Paxos creates tokens when dollars come in and removes them on redemption at 1:1. PayPal says the reserves are US dollar deposits, US Treasuries and similar cash equivalents. Paxos publishes a monthly reserve report and a monthly check by the accounting firm KPMG. On 27 September 2026 about 2.78 billion PYUSD was in circulation, mostly on Ethereum and Solana. That is under 1% of all dollar stablecoins.

PYUSD is used for payments and transfers inside PayPal, and outside it in wallets and decentralised finance. PayPal offers eligible US users an advertised 4% a year in rewards on PYUSD held in PayPal if they opt in, under its own rewards programme at a rate it sets. The token itself pays nothing. Part of the supply is also lent out on lending platforms such as Kamino and SparkLend.

In October 2025 Paxos minted 300 trillion PYUSD by mistake and burned it within about 30 minutes. The incident showed that the issuer controls supply, and that such an error is visible on-chain.