PayPal USD (PYUSD) is a stablecoin pegged 1:1 to the U.S. dollar. You can buy, hold, send, or use it for payments, all directly from your PayPal or Venmo account. Backed by U.S. dollar deposits and short-term Treasuries, PYUSD offers the stability of fiat with the flexibility of blockchain.
In 2025, PYUSD is making waves in the digital payments space. Cross-border remittances are getting faster and cheaper, and blockchain integrations like Solana and Stellar are expanding its reach. In June 2025, PYUSD crossed the $1 billion market cap mark, making it the 10th-largest stablecoin in DeFi and one of the fastest-growing USD-backed tokens this year.
PayPal USD's market cap crossed $1 billion in June 2025 | Source: DefiLlamaKey partnerships have helped accelerate this growth. Coinbase added PYUSD with zero trading fees, boosting retail access. Fiserv and Mastercard are integrating PYUSD into mainstream payment systems, bringing stablecoins into the world of traditional finance. PayPal’s Xoom platform now allows users to send remittances with PYUSD, reducing fees and increasing transaction speed globally.
With growing adoption, regulatory backing, and expanding blockchain support, PYUSD is becoming a trusted digital dollar for everyday users.
What Is PayPal USD (PYUSD)?
PayPal USD (PYUSD) is a U.S. dollar-backed stablecoin issued by Paxos Trust Company, a regulated financial institution. You can always buy or redeem 1 PYUSD for 1 USD using PayPal or Venmo. It’s designed to offer fiat-level trust with crypto-level utility.
Each PYUSD token is backed by cash, U.S. Treasuries, and cash equivalents. Paxos provides monthly reserve reports and independent attestations to ensure transparency. PYUSD is also regulated by the New York State Department of Financial Services (NYDFS), the same body that oversees other major digital asset issuers. This regulatory oversight gives users added confidence in its stability and compliance.
PYUSD's attestation report for May 2025 | Source: PayPalSince launch, PYUSD has expanded across major blockchains. It debuted on Ethereum as an ERC-20 token, giving it access to wallets and DeFi platforms. In May 2025, PYUSD launched on Solana, enabling faster and cheaper transactions for day-to-day use. PYUSD is also available on Berachain, Plume, and Flow blockchains as of June 2025. In June 2025, PayPal also announced plans to make PYUSD available on Stellar, a blockchain built for global money movement, which will strengthen PYUSD’s position in remittances and cross-border payments.
PYUSD availability on different blockchains | Source: DefiLlamaWith a market cap of around $1 billion, and partnerships with platforms like Coinbase, Mastercard, and Fiserv, PYUSD is gaining traction both inside and outside the crypto market. Its deep integration with PayPal's ecosystem makes it one of the most user-friendly and widely accessible stablecoins available today.
What Blockchain Networks Is PYUSD Issued on?
PYUSD is a fully on-chain stablecoin designed for broad blockchain compatibility. It launched as an ERC‑20 token on Ethereum, the leading platform for Web3 projects and dApps. This gave PYUSD instant access to DeFi platforms, crypto wallets, and Web3 apps. Ethereum remains a trusted foundation for stablecoin adoption.
In May 2025, PYUSD expanded to Solana, a high-speed, low-fee blockchain. This move made PYUSD more practical for everyday payments, microtransactions, and on-chain activity like Web3 gaming and NFT marketplaces.
Next, Stellar integration is expected later this year. Known for cross-border efficiency and low-cost remittances, Stellar will make PYUSD even more useful for international payments, especially in underbanked regions.
With support across Ethereum, Solana, and soon Stellar, PYUSD is becoming one of the most versatile and accessible stablecoins in the crypto ecosystem. Whether you're using DeFi apps, sending payments, or building on Web3, PYUSD is ready to power your next transaction.
How PayPal's Stablecoin PYUSD Works
PYUSD keeps your money stable, mobile, and ready to use, whether you're paying friends or exploring Web3. Here's how:
1. Pegged 1:1 to the U.S. Dollar: Every PYUSD token is backed by one U.S. dollar or an equivalent reserve asset. When you buy PYUSD in the PayPal app, that dollar is held in reserve. If you sell PYUSD, the token is burned, and you get your money back. This mechanism keeps the value stable at $1 per PYUSD.
Source: PayPal2. Buy, Sell, or Redeem Easily: You can purchase PYUSD using your PayPal balance, linked debit card, or bank account. Just go to the Crypto section in the PayPal or Venmo app and choose the amount. You can also redeem your tokens for USD at any time.
Source: PayPal3. Send and Receive on PayPal or Wallets: You can transfer PYUSD to friends or merchants using PayPal or Venmo with zero fees. Want to go off-platform? You can also send PYUSD to Ethereum or Solana wallet addresses, just make sure the receiving wallet supports PYUSD. Blockchain network fees may apply.
Source: PayPal4. Use It at Checkout or Convert It: When shopping online, you can choose PYUSD as your payment method during checkout. PayPal will automatically convert it into the merchant’s local currency. You can also convert PYUSD to other cryptocurrencies like BTC or ETH within the PayPal app, for a small fee.
Source: PayPalWhy Use PYUSD? Benefits at a Glance
PYUSD is a practical option for everyday users already familiar with PayPal or Venmo. If you use these platforms, you can start sending and spending PYUSD without downloading extra apps or managing external wallets. It’s also ideal for online shoppers, letting you pay at millions of merchants that accept PayPal, with the added benefits of blockchain-backed speed and stability. For remittance senders, PYUSD offers a low-cost, fast alternative to traditional cross-border transfers, especially with PayPal’s Xoom integration and upcoming Stellar blockchain support.
Developers and crypto-native users can also benefit from PYUSD. Its open, programmable structure allows easy integration into smart contracts, Web3 applications, and payment systems across Ethereum and Solana. For traders and DeFi users, PYUSD provides stable liquidity on decentralized exchanges and access to yield farming opportunities. Whether you're a beginner or a builder, PYUSD offers a flexible, accessible way to use digital dollars in both traditional and decentralized ecosystems.
Key Benefits of PayPal's Stablecoin
PYUSD was built to make stablecoins useful for everyday people. Here are the key benefits:
1. Always worth $1: PYUSD is fully backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents. You can buy or sell 1 PYUSD for $1 at any time in PayPal or Venmo. Paxos, the issuer, publishes monthly reserve reports for full transparency.
2. Built into PayPal and Venmo: No extra apps. No complicated wallets. You can buy, hold, send, or spend PYUSD right from your existing PayPal or Venmo account.
3. No fees for P2P transfers: Send PYUSD to friends or family in the U.S. Instantly, without paying any fees. It’s as easy as sending a regular PayPal payment. This makes PYUSD ideal for digital payments and everyday use.
4. Open and programmable: In addition to using it for making payments, developers can build with it too. As a blockchain-based asset, it can be used in Web3 apps, smart contracts, and DeFi protocols. PYUSD can be integrated easily into in-game tokens or payment rails in dApps.
How to Earn Rewards with PYUSD (Upcoming Feature)
Starting in Summer 2025, PayPal users can earn monthly rewards by simply holding PYUSD. The program offers a variable APY, currently set at 3.7%, making it one of the most accessible ways to earn passive income on stablecoins.
Here’s how it works:
• Rewards are based on your average daily PYUSD balance.
• They are paid once a month in PYUSD, directly into your PayPal crypto wallet.
• You don’t need to stake or lock your funds; just hold PYUSD in your account.
• If you sell or transfer your PYUSD mid-month, you’ll still receive the rewards you earned so far.
This feature turns PYUSD into more than just a payment token. It becomes a yield-generating asset for anyone with a PayPal account. You can track your earnings and current reward rate in the Crypto section of the app.
PYUSD vs. Other Stablecoins
PayPal USD market dominance vs. other stablecoins | Source: DefiLlamaAlthough there are several stablecoins available in the crypto market, each one operates differently from the others. PYUSD sets itself apart with its regulatory compliance, transparent reserves, and native PayPal integration.
Let’s break it down.
1. PayPal USD (PYUSD) vs. Tether (USDT)
Tether (USDT) is the most-used stablecoin in crypto. But it has faced years of questions about its reserves and transparency. While USDT is popular for trading, it’s not as tightly regulated. It’s issued offshore and doesn’t offer regular audits from trusted U.S. regulators.
2. PYUSD vs. USDC
USD Coin (USDC) shares more similarities with PYUSD. It’s issued by Circle and backed by cash and short-term Treasuries. Both USDC and PYUSD are regulated and provide regular attestations. However, USDC has broader support in DeFi, while PYUSD is more focused on payments and retail use.
3. PayPal USD (PYUSD) vs. Ripple USD (RLUSD)
RLUSD is Ripple’s newly launched U.S. dollar-backed stablecoin, focused on institutional payments and cross-border settlements. While both PYUSD and RLUSD are fully backed and regulated, PYUSD offers a clear advantage in retail accessibility through PayPal and Venmo. RLUSD targets enterprise-grade use cases, whereas PYUSD is built for everyday payments, remittances, and personal finance.
What Makes PYUSD Different From Other Stablecoins?
The biggest advantage is its built-in access to PayPal and Venmo. No other stablecoin offers seamless use across two of the most popular payment apps. This makes PYUSD ideal for real-world transactions, not just crypto trading.
If you're looking for a stablecoin that combines regulatory clarity, real-time usability, and blockchain support, PYUSD is a potential choice to consider.
How to Buy PYUSD on BingX
Buying PYUSD on BingX is fast and beginner-friendly. Follow these steps to get started:
Step 1: Create a BingX Account: Visit bingx.com and sign up. Complete identity verification (KYC) to unlock all features.
Step 2: Deposit Funds: Add USDT or another supported crypto to your BingX wallet. You can also deposit fiat using BingX’s payment channels.
Step 3: Buy PYUSD: Go to the Spot section. Search for the PYUSD/USDT trading pair. Choose a Market Order for instant purchase or a Limit Order to set your preferred price.
Step 4: Store or Transfer: You can hold your PYUSD on BingX or transfer it to an external Ethereum or Solana wallet. Make sure your wallet supports PYUSD before sending.
Pro Tips: For added security, always enable two-factor authentication (2FA) on your account and double-check all network or trading fees before making a transaction. Make sure to verify PYUSD contract addresses on paxos.com to avoid interacting with fake or scam tokens.
With BingX now supporting PYUSD, you can enjoy the best of both worlds: trusted platforms and borderless payments.
Key Considerations Before Using PYUSD
PYUSD is designed for stability, but like all digital assets, it still comes with risks you should understand before using it.
1. On-chain transfer fees: Sending PYUSD to Ethereum or Solana wallets involves blockchain network fees. These fees aren’t charged by PayPal or BingX; they depend on network activity. During periods of congestion, fees may spike, especially on Ethereum.
3. Evolving regulations: Stablecoins like PYUSD operate in a highly dynamic regulatory landscape. While PYUSD is regulated by the New York Department of Financial Services (NYDFS), future laws or global frameworks may impact how it’s used, traded, or held.
4. Supply concentration: Recent reports show that over 90% of PYUSD is held by a small group of wallets. This "whale" concentration could lead to concerns around liquidity and token movement. While not unusual for new stablecoins, it’s something to watch as circulation expands.
5. Market cap volatility: PYUSD is pegged to the U.S. dollar and redeemable 1:1. But its total market cap, while over $1 billion, is still small compared to stablecoin leaders like USDT or USDC. This means its adoption and liquidity may fluctuate as the ecosystem grows.
Like any stablecoin, PYUSD offers simplicity and security, but it’s important to stay informed and monitor updates from PayPal, Paxos, and your exchange.
Conclusion and Future Outlook of PYUSD
PayPal USD (PYUSD) combines the stability of fiat with the flexibility of blockchain, all within platforms you already use, such as PayPal, Venmo, and BingX. Backed 1:1 by U.S. dollar reserves and regulated by NYDFS, it’s becoming a go-to stablecoin for payments, remittances, and on-chain activity.
With support across Ethereum, Solana, and soon Stellar, plus new reward features and major partnerships, PYUSD offers practical utility for both beginners and crypto-savvy users. Still, be mindful of risks like network fees, regulation changes, and token concentration. As stablecoins evolve, PYUSD stands out for its trust, transparency, and everyday usability.
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FAQs on PayPal USD (PYUSD) Stablecoin
1. How do I buy, send, or earn rewards with PYUSD stablecoins?
You can buy PYUSD on crypto exchanges like BingX or on PayPal and Venmo. Use your PayPal balance, debit card, or bank account to purchase it. On BingX, you can trade PYUSD in the Spot Market. To send PYUSD, just use PayPal or Venmo for free peer-to-peer transfers in the U.S., or transfer it on-chain to Ethereum or Solana wallet addresses (network fees apply).
To earn rewards, hold PYUSD in your PayPal crypto wallet. Starting mid-2025, you’ll receive monthly rewards, currently at 3.7% APY, based on your average daily balance.
2. Why is Stellar important for PYUSD?
Stellar is built for low-cost, cross-border payments. PYUSD’s upcoming launch on Stellar will make it faster and cheaper to send stablecoins globally. It’s especially helpful for remittances and payments in developing countries where traditional banking is slow or expensive.
3. Is PYUSD safe and regulated?
Yes. PYUSD is issued by Paxos, a regulated trust company under the New York Department of Financial Services (NYDFS). It’s fully backed 1:1 by high-quality U.S. dollar reserves and includes monthly transparency reports. PayPal also offers protection for unauthorized transfers (up to $50,000).
4. How is PYUSD different from USDC or USDT?
Like USDC, PYUSD is regulated, transparent, and backed by U.S. dollar reserves. But what sets it apart is its native integration with PayPal and Venmo, allowing you to use stablecoins for real-world payments without leaving the apps you already use.
Compared to USDT, PYUSD offers stronger regulatory oversight and more transparency. While USDT is widely used in crypto trading, PYUSD focuses on daily payments, stable value storage, and seamless retail adoption.