PayPal USD (PYUSD) USD Price

PYUSD is a US dollar-pegged stablecoin issued by Paxos Trust Company on behalf of PayPal. It is backed 1:1 by US dollar deposits, short-term US Treasuries, and cash equivalents, with monthly attestation reports published by an independent auditor. What distinguishes PYUSD from USDT and USDC is its native integration into PayPal and Venmo — platforms with over 400 million users globally. Users can buy, hold, send, and spend PYUSD with zero fees within the PayPal/Venmo ecosystem. PYUSD is available on Ethereum, Solana, Arbitrum, and Stellar, giving it cross-chain reach. Unlike USDT, which is issued by Tether in the British Virgin Islands, PYUSD is regulated by the New York State Department of Financial Services (NYDFS), offering a different compliance profile.

PYUSD maintains its peg through a reserve-backed model: every token in circulation is backed by at least $1 in reserves held by Paxos. These reserves consist of US dollar deposits, short-term US Treasury bills, and similar cash equivalents. Paxos publishes monthly attestation reports so holders can verify reserve adequacy. PYUSD is redeemable 1:1 for US dollars through Paxos, and market arbitrage keeps the exchange price tightly bound to $1.00 — when PYUSD deviates, traders buy or redeem to close the gap.

Yes. PayPal launched a rewards program in April 2025 that allows eligible US users to earn approximately 3.7–4% annually on PYUSD held in their PayPal or Venmo accounts. This yield is funded by the interest Paxos earns on the Treasury-backed reserves. However, the program’s future is subject to regulatory uncertainty: the draft CLARITY Act proposes restrictions on paying yield to stablecoin holders, and the OCC’s proposed rulemaking in early 2026 contained ambiguous language on the topic. PayPal is actively expanding PYUSD rewards to up to 70 countries, but US-specific rules could change the program’s availability.

Yes. PayPal has positioned PYUSD as GENIUS Act-compliant, and described it as the largest USD stablecoin to receive federal regulatory clarity. The GENIUS Act, signed into law by President Trump in 2025, established a federal regulatory framework for the $250 billion stablecoin market, granting oversight to issuers with over $10 billion outstanding. For US users, this compliance means PYUSD operates within a clear legal framework — reducing uncertainty around whether the stablecoin could face enforcement actions or delistings. However, separate legislation like the CLARITY Act could still affect specific features like yield programs.

PYUSDx is a framework launched in February 2026 by PayPal in partnership with MoonPay and M0. It allows developers to issue their own custom, application-specific stablecoins that are fully backed by PYUSD reserves. Developers can create branded digital dollars without building monetary infrastructure from scratch — MoonPay provides distribution and onboarding, M0 provides the token platform, and Paxos maintains the underlying reserve backing. USD.ai was the first project to use PYUSDx, building a stablecoin for AI infrastructure payments. For the PYUSD ecosystem, this creates new demand sinks as each PYUSDx deployment locks up PYUSD in smart contracts, potentially increasing overall circulation and utility.