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PayPal (PYUSD)

B
Paxos-Issued, PayPal-DistributedSPOFMass Market & PayPal Users

PYUSD is PayPal's stablecoin, issued by Paxos Trust Company under NY DFS regulation. Reserves are held in US Treasury bills, cash deposits, and reverse repurchase agreements. Monthly attestations are published by WithumSmith+Brown. Available on Ethereum and Solana, accessible to PayPal and Venmo's 400M+ user base.

Visit PayPal (PYUSD)
By Steve L, Editorial Lead·Reviewed by Proof of Custody Editorial
·Last updated Mar 2, 2026
74
Custody & SecurityEase of UseFeesFeaturesTransparencySupport
Score Breakdown
Custody & Security35% weight
68
Ease of Use20% weight
92
Fees15% weight
72
Features10% weight
68
Transparency10% weight
75
Support10% weight
78
Assessment
Key Strength

PYUSD issued by Paxos under NY DFS regulation. Monthly attestations. Distributed through PayPal and Venmo to 400M+ users. Largest fintech stablecoin by distribution reach.

Primary Risk

PayPal is the distribution layer, not the custodian. Reserve custody depends on Paxos infrastructure. Limited DeFi composability compared to USDC. PayPal can freeze user accounts.

Pros
  • +400M+ PayPal/Venmo user distribution
  • +Paxos regulatory framework
  • +Monthly attestations
  • +Simple consumer UX
Cons
  • -Limited DeFi composability
  • -PayPal can freeze accounts
  • -Smaller market cap than USDC/USDT
  • -Consumer-focused, limited institutional features
Custody Features
✕Multisig
✕Multi-Institution
✕No Single Point of Failure
Segregated Accounts
Proof of Reserves
✕Insurance
Regulated Custodian
No Physical Exposure
✕Multi-Jurisdiction
✕Inheritance
✕Segregated Insurance
✕IRA
✕Lending
Buy/Sell
✕Dynasty Trusts
Fees
Free PayPal-to-PayPal transfers
Minimum$0
Regulatory
Jurisdiction
United States
Licenses
NY DFS Trust Charter (via Paxos)
Custody Independence Standard
0 of 4 pillars met
Vendor independenceNot met
Entropy independenceNot publicly documented
Control independenceNot met
Operational independenceDepends on configuration

1 independent party or system must fail before a PayPal (PYUSD) holder's bitcoin is at risk.

  • •A single institution controls the keys, so its compromise, insolvency, or unilateral action is sufficient to put funds at risk.
  • •Regulated status and segregation can protect assets in insolvency, but they do not create independence of control.
How this is assessed →
Insurance

PayPal (PYUSD)'s custody insurance is not publicly disclosed.

Frequently asked questions
Is PayPal (PYUSD) safe?+

PayPal (PYUSD) uses a paxos-issued, paypal-distributed model and scores 74/100 in our independent review, including 68/100 on custody security. One institution can move funds, which is a single point of failure. Safety depends on your priorities; see the full score breakdown above.

Is my bitcoin insured at PayPal (PYUSD)?+

PayPal (PYUSD)'s custody insurance is not publicly disclosed in a form we can verify. Where it exists, custody insurance covers specific named events up to shared limits and does not cover price loss. Confirm coverage in writing before relying on it.

What happens to my bitcoin if PayPal (PYUSD) fails?+

Because PayPal (PYUSD) holds custody through a single institution, recovery in a failure would run through that institution's bankruptcy or resolution process and depends on whether assets were segregated and properly titled. This is the concentration risk of single-custodian models.

Does PayPal (PYUSD) support inheritance?+

PayPal (PYUSD) does not advertise a dedicated inheritance or beneficiary feature in the data we track. Confirm current options with the provider, since custody inheritance handling changes.

Compare

PayPal (PYUSD) vs Others

vs OnrampA
90/100
vs Onramp FinanceA
89/100
vs UnchainedA-
85/100
vs Onramp LendingA-
84/100