# PayPal USD (PYUSD)

> PayPal USD (PYUSD) is a stablecoin launched by PayPal in 2023, backed by U.S. dollar assets, simplifying cross-border trade and online transactions globally.

- Canonical URL: https://iq.wiki/wiki/paypal-usd-pyusd
- Categories: Cryptoassets
- Created: 2023-10-30T20:41:28.000Z
- Last updated: 2026-07-09T14:59:14.785Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**PayPal USD (PYUSD**) is a [stablecoin](https://iq.wiki/wiki/stablecoin) launched by PayPal and issued by [Paxos](https://iq.wiki/wiki/paxos) [\[1\]](#cite-id-QxIH4iqxOA) [\[7\]](#cite-id-0J3ujGUPoW). It is fully backed by U.S. dollar deposits, U.S. Treasury's and other cash equivalents. [\[1\]](#cite-id-QxIH4iqxOA) [\[7\]](#cite-id-0J3ujGUPoW)​

[YOUTUBE@VID](avz4_Msc9aE)

## Overview

PayPal USD was launched in August 2023 by PayPal [\[1\]](#cite-id-QxIH4iqxOA). It offers several functions. These include:

* PYUSD can be transferred to compatible [crypto wallets](https://iq.wiki/wiki/cryptocurrency-wallet);
* both PayPal Wallets and externally;
* Customers can purchase goods with PYUSD, with automatic conversion to [fiat](https://iq.wiki/wiki/fiat-money) occurring at the point of sale;
* Customers use PYUSD to purchase and sell any of PayPal’s supported currencies. [\[1\]](#cite-id-QxIH4iqxOA)

​[Dan Schulman](https://iq.wiki/wiki/dan-schulman), president and CEO of PayPal, in an August press release said:

> The shift toward digital currencies requires a stable - instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. [\[1\]](#cite-id-QxIH4iqxOA)

PYUSD was originally launched as an [ERC-20](https://iq.wiki/wiki/erc-20) token on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain). [\[1\]](#cite-id-QxIH4iqxOA) By September 2025, its market capitalization had grown to $1.3 billion, and its availability expanded to other blockchains, including [Solana](https://iq.wiki/wiki/solana), [Tron](https://iq.wiki/wiki/tron), and [Avalanche](https://iq.wiki/wiki/avalanche). This multi-chain expansion, facilitated by the interoperability protocol [LayerZero](https://iq.wiki/wiki/layerzero), aims to provide users with faster and cheaper transaction options. [\[11\]](#cite-id-jnauLZVIRi)​

> PayPal USD will be available to an already large and growing community of external developers, wallets and web3 applications, can be easily adopted by exchanges, and will be deployed to power experiences within the PayPal ecosystem [\[1\]](#cite-id-QxIH4iqxOA)

In September 2023, [Paxos](https://iq.wiki/wiki/paxos) began publishing a monthly [Reserve](https://iq.wiki/wiki/reserve) Report for PYUSD that openly details the components that make up the [stablecoin’s](https://iq.wiki/wiki/stablecoin) reserves. Additionally, [Paxos](https://iq.wiki/wiki/paxos) provides a third-party validation of PayPal USD’s [reserve](https://iq.wiki/wiki/reserve) holdings. This verification was set to be executed by an impartial accounting firm unrelated to the parties involved in accordance with the standards defined by the American Institute of Certified Public Accountants [\[1\]](#cite-id-QxIH4iqxOA).

## Use Cases

Some of the use cases of PayPal USD are: [\[1\]](#cite-id-QxIH4iqxOA)​

* International transactions;
* Secure transactions;
* Online shopping;
* Freelancing and e-commerce;
* Financial management.

## Partnership with Coinbase

On April 24, 2025, PayPal and [Coinbase](https://iq.wiki/wiki/coinbase) announced an expansion of their partnership aimed at increasing the adoption, distribution, and utilization of PayPal USD. This collaboration seeks to drive innovation in [stablecoin](https://iq.wiki/wiki/stablecoin)-based solutions for consumers, enterprises, and institutions.

As part of the expanded partnership, [Coinbase](https://iq.wiki/wiki/coinbase) platforms will offer users the ability to buy, sell, and trade PYUSD with no platform fees. Users will also be able to redeem PYUSD 1:1 for US dollars directly on [Coinbase](https://iq.wiki/wiki/coinbase). The companies are also committed to jointly exploring new payment use cases to accelerate the adoption and utility of [stablecoin](https://iq.wiki/wiki/stablecoin) solutions for moving and managing money globally, particularly in commerce. Additionally, they plan to explore new use cases for PYUSD in [DeFi](https://iq.wiki/wiki/defi) and onchain platforms.

This agreement builds upon their previous collaboration announced in 2021, which allowed [Coinbase](https://iq.wiki/wiki/coinbase) users to use their PayPal accounts for immediate funding of purchases on [Coinbase](https://iq.wiki/wiki/coinbase) and for withdrawing fiat currency. [\[7\]](#cite-id-0J3ujGUPoW) [\[8\]](#cite-id-RGT0MaU8Pt) [\[9\]](#cite-id-TWBM4FO0kf) [\[10\]](#cite-id-YJXL0Frysx)​

## Developments

#### SEC Probe

In November 2023, PayPal received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD (PYUSD). The subpoena requests the production of documents [\[6\]](#cite-id-t5XbpMx2jy).

> “It’s more important than ever that Congress enact legislation to provide comprehensive digital asset regulation, especially for stablecoins,” Patrick McHenry (R-NC), chairman of the House Financial Services Committee, said in a written statement. “We are currently at a crossroads to keep America at the forefront of digital asset innovation.” [\[6\]](#cite-id-t5XbpMx2jy)

In April 2025, PayPal disclosed that the SEC had informed the company in February 2025, that it was *“closing this inquiry without enforcement action,”* effectively ending its investigation into the PYUSD [stablecoin](https://iq.wiki/wiki/stablecoin). [\[6\]](#cite-id-t5XbpMx2jy)​

#### YouTube Integration

On December 12, 2025, it was reported that YouTube began allowing its U.S.-based content creators to receive earnings in PYUSD through the Creator Wallet. 

May Zabaneh, PayPal's head of crypto, confirmed the payout option. This integration followed PayPal's addition of PYUSD as a payment recipient choice in the third quarter of 2025 and is part of a broader adoption of stablecoins for payment infrastructure to enable faster settlement and lower friction. [\[15\]](#cite-id-vthm7MBft9C2xCo8)​

## Accidental Minting Incident

On October 15, 2025, [Paxos](https://iq.wiki/wiki/paxos) mistakenly minted approximately $300 trillion in PYUSD on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain). The company confirmed the event was the result of an internal technical error that occurred during a routine transfer. [Paxos](https://iq.wiki/wiki/paxos) stated it immediately identified the mistake and burned the excess PYUSD within minutes of the minting. The company assured that there was no security breach, customer funds were [safe](https://iq.wiki/wiki/safe), and the circulating supply was not affected. [\[12\]](#cite-id-h6ZLZ2OFl6) [\[13\]](#cite-id-GgSmfUfaIO) [\[14\]](#cite-id-5KkB930rCt)​

## FV Bank Integration

In January 2025, digital lender FV Bank expanded its [stablecoin](https://iq.wiki/wiki/stablecoin) capabilities through a partnership with PayPal, integrating PayPal USD (PYUSD). The integration, which is live for account holders, allows for the direct receipt of PYUSD into customers' USD accounts with automatic real-time conversion to USD.

Miles Paschini, CEO of FV Bank, stated that the integration positions FV Bank as one of the only regulated banking institutions in the USA to offer blockchain-powered payment [rails](https://iq.wiki/wiki/rails) and extensive [stablecoin](https://iq.wiki/wiki/stablecoin) on-ramp and off-ramp services.. Account holders can also send outbound payments in PYUSD to beneficiaries without needing to mint the [stablecoin](https://iq.wiki/wiki/stablecoin) or manage an external digital wallet. [\[4\]](#cite-id-bB27W4rS4S) [\[5\]](#cite-id-3cmIhAvqfC) [\[6\]](#cite-id-t5XbpMx2jy)​

## **PayPal USD (PYUSD) Launches Natively on Polygon Through the Open Money Stack**

On July 9, 2026, PayPal USD (PYUSD) became available natively on the [Polygon blockchain](https://iq.wiki/wiki/polygon) through an integration with the Polygon Open Money Stack (OMS) and [Paxos](https://iq.wiki/wiki/paxos), the regulated issuer of the [stablecoin](https://iq.wiki/wiki/stablecoin). 

The launch enables businesses to access federally regulated on-chain dollars for cross-border payments, settlements, and treasury operations through a single integration that combines stablecoin infrastructure with payment rails, compliance tools, and fiat on- and off-ramps. [\[16\]](#cite-id-Uhe5XE3j0Hx7LLQa)​[\[17\]](#cite-id-AaYoxIaqpj1n64WC)  

According to [Polygon](https://iq.wiki/wiki/polygon), businesses already using the Open Money Stack can accept payments, hold and transfer PYUSD, and convert funds back into local currencies without integrating multiple providers or building separate banking and compliance systems. 

Polygon stated that its network currently settles more than 2.6 trillion in total stablecoin volume, positioning PYUSD within an existing payments-focused ecosystem.

PYUSD is issued by Paxos Trust Company under a national trust charter supervised by the U.S. Office of the Comptroller of the Currency (OCC), making it one of the largest U.S. dollar stablecoins issued by a federally regulated entity. 

Polygon and Paxos said the integration is intended to support enterprise use cases such as payroll, remittances, marketplace settlements, and international business payments by combining regulated digital dollars with blockchain-based payment infrastructure. [\[16\]](#cite-id-Uhe5XE3j0Hx7LLQa)​[\[17\]](#cite-id-AaYoxIaqpj1n64WC) 

​