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Information about PayPal USD (PYUSD)
PYUSD is a stablecoin launched by PayPal, one of the world's leading companies in e-commerce and online payments. Similar to stablecoins like Tether USD (USDT) and USD Coin (USDC), PayPal USD is also backed by US dollars, US Treasury bonds, and other cash-equivalent assets.
PayPal claims that PYUSD will facilitate direct and secure peer-to-peer transactions within Web3, a significant step in eliminating the reliance on traditional intermediaries such as banks and payment processors. This not only helps to increase the speed and efficiency of transactions but also brings cost savings for users.
PYUSD is a stablecoin operating on Ethereum and Solana according to ERC20 and SPL standard, and can be used for:
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News
PayPal USD experienced a significant decline in market capitalization, falling from a peak of 1,010 million USD in August 2024 to approximately 515.17 million USD in January 2025. This reflects a broader trend of waning interest in tokenized assets within the crypto market, especially as its dominance on the Solana network has diminished.
As of January 2025, Ethereum holds 67.21% of the circulating supply of PayPal USD, while the stablecoin continues to show significant on-chain activity. Despite the loss in market cap, its supply on both Ethereum and Solana networks has increased, sparking speculation about its future viability.
FV Bank integrates PayPal USD (PYUSD) stablecoin into its platform to expand its offerings. This allows account holders to manage deposits and payments directly in PYUSD.
The addition enables real-time conversion of PYUSD to USD in customers’ accounts, simplifying transactions and eliminating the need for external wallets or manual minting.
FV Bank incorporates compliance tools for sanctions and anti-money laundering detection. This move follows the bank’s previous integrations of USDC and USDT, enriching its stablecoin services.
Decline in PYUSD circulation: Paxos’ latest transparency report indicates a decrease in the circulation of PYUSD. As of November 30, 2024, the total circulation of PYUSD tokens is valued at approximately 539,827,757 USD, highlighting a reduction compared to previous reports.
U.s. treasury agreements backing: The main source of support for PYUSD comes from U.S. Treasury reverse repurchase agreements, which hold a substantial market value of about 450,079,080 USD. These agreements play a critical role in ensuring the financial stability of the stablecoin.
Total net assets backing PYUSD: The total net assets backing PYUSD were reported at a market value of 551,139,357 USD. Cash deposits, totaling approximately 26,268,777 USD, further reinforce the stablecoin’s security, offering stakeholders confidence in its asset backing.
PayPal has tapped Xoom to enable cross-border payments using its stablecoin, PayPal USD.
The partnership is designed to expand access to PYUSD in Asian and African markets and let PayPal settle cross-border transactions outside of traditional banking hours, PayPal said.
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