PayPal USD

PayPal USD (PYUSD) is a digital currency created by American fintech giant PayPal Holdings to help transform the way people around the globe think about digital currencies, merging the worlds of fiat and crypto. As a U.S. dollar stablecoin, PYUSD offers a high degree of financial stability — akin to traditional fiat assets — while providing users the benefits of being engaged with crypto.

How does PayPal USD work? The PayPal USD stablecoin mirrors the value of the U.S. dollar while allowing owners to transact globally with minimal fees. Moreover, the asset can be used freely across PayPal’s ecosystem, consisting of over 300 million active consumers and 25 million merchants, thus helping bridge the gap between fiat and crypto finance.

What is PayPal USD (PYUSD)?

PYUSD has its value anchored in physical US dollar deposits and bonds issued by US Treasuries, all managed by the Paxos Trust Company, a New York-based regulated blockchain and digital asset solutions provider. What is PayPal USD (PYUSD) backed by? Each PYUSD token is backed 1:1 by financial offerings made available by the American government, allowing its value to remain consistent despite changing market conditions.

The introduction of PYUSD helps bridge the gap between traditional currencies and digital assets, thus extending the use cases of PayPal USD to platforms operating within the realm of traditional finance (TradFi) and decentralized finance (DeFi).

Is PYUSD secure? On paper, PYUSD’s security is upheld by stringent measures implemented by PayPal. However, some have highlighted security risk concerns related to the currency’s “AssetProtection” module, which reportedly has the capability to freeze and delete a person’s US PayPal balance.

PYUSD fees are structured in a cost-effective manner, making this U.S. dollar-pegged stablecoin highly accessible. For those wondering how to send and receive PayPal USD, PYUSD can be transferred within the platform itself for no fees. However, charges are applicable when converting PYUSD for other cryptocurrencies and when carrying out online purchases and withdrawals.

PYUSD price today

At the top of this page is a PYUSD-to-USD live price ticker alongside other pertinent information regarding the currency, including PYUSD’s total market capitalization. Wondering how to buy PayPal USD? The PayPal digital currency can be purchased via PayPal’s web platform and smartphone application. However, only whitelisted clients — those who have completed specific key Know Your Customer (KYC) processes — can trade the asset.

Is PYUSD a smart investment? Since the asset aims to maintain its value at par with the U.S. dollar, buying it is akin to storing digital dollars. That being said, many stablecoins have seen their values fluctuate in the past, but these jumps are usually relatively small compared with other assets.