PayPal USD (PYUSD) is a US dollar-backed stablecoin issued by PayPal, a global financial technology company. PYUSD is designed to maintain a 1:1 parity with the US dollar and is fully backed by reserves comprising dollar deposits, US Treasury bonds, and similar cash equivalents. The issuance and custody of PYUSD are managed by Paxos Trust Company, a regulated blockchain infrastructure provider. PYUSD operates as an ERC-20 token on the Ethereum blockchain and is also compatible with the Solana blockchain to facilitate faster transactions.

The stablecoin can be accessed through PayPal's platform, where users can buy, sell, hold, and transfer PYUSD. The reserves backing PYUSD are subject to audits by independent third parties to ensure transparency and compliance.

PYUSD serves various functions, including:

• Payments and Transfers: PYUSD can be used to send and receive payments within the PayPal ecosystem (no fees for US-based users) and outside of PayPal by transferring to Ethereum or Solana wallet addresses. Network fees may apply for blockchain transactions.

• Purchases: Users can use PYUSD for transactions when checking out on PayPal. The stablecoin is converted to fiat currency during the checkout process.

• Cryptocurrency Conversion: PYUSD can be converted into other cryptocurrencies supported on PayPal, subject to fees.

• Blockchain Integration: As a token issued on Ethereum and Solana, PYUSD is compatible with decentralised applications (dApps), DeFi protocols, and wallets. It enables developers to build programmable financial services using PYUSD as a payment layer.

• Stable Asset Holding: PYUSD provides users with a stable cryptocurrency option, which mitigates exposure to volatility while still allowing participation in blockchain ecosystems.

• Remittances: The stablecoin offers a low-cost solution for international money transfers, leveraging blockchain technology for quicker and more efficient settlement.

• Web3 Use Cases: PYUSD is designed to integrate with the emerging Web3 economy, bridging traditional finance with decentralised systems.