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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.

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
Security
Insurance & Regulatory
Jurisdiction
United States
Licenses
NY DFS Trust Charter (via Paxos)