What is PayPal USD?
PayPal USD (PYUSD) is a stablecoin pegged to the US dollar at 1:1, launched in 2023 by an international payments company. It is one of the first examples of a major traditional payment business entering the stablecoin market.
How it works
The token is issued by a regulated entity and backed by dollar deposits, short-term US Treasury securities, and cash equivalents; reserve reports are published monthly. PYUSD operates on multiple public blockchains and is used both within the payment ecosystem and in DeFi.
Pros and Cons
- Pros: integration with familiar payment services, regulated issuer, transparent reserves.
- Cons: lower liquidity than market leaders, potential token freezing by the issuer, dependence on a single corporate ecosystem.