PYUSD Overview
PayPal USD (PYUSD) is a stablecoin introduced by PayPal in partnership with Paxos Trust Company, a regulated financial institution. This stablecoin aims to serve as a bridge between traditional financial systems and blockchain-based transactions, allowing for efficient, stable, and widely accepted digital payments. As a U.S. dollar-pegged asset, PYUSD is designed to maintain a 1:1 parity with the U.S. dollar, making it a reliable option for those seeking stable digital assets for online transactions and on-chain financial interactions.
Issuance and Regulatory Compliance
PYUSD is issued by Paxos Trust Company, a New York State Department of Financial Services (NYDFS)-regulated entity. Paxos manages the reserve assets backing PYUSD, ensuring they are held in cash, U.S. Treasury bonds, and similar high-liquidity instruments. This approach is designed to maintain PYUSD’s 1:1 peg to the U.S. dollar, creating a secure and trustworthy digital currency for users. This regulatory oversight provides added security for PYUSD holders and helps establish credibility within the digital asset landscape.
