How It Works
Paxos Trust Company mints PYUSD 1:1 against dollar reserves held in segregated accounts at US-regulated depository institutions and money market funds. PayPal users can convert USD from their PayPal or Venmo balance to PYUSD at any time without fees. PYUSD can be sent to external wallets, used for PayPal payments between users, and converted back to USD. On Solana, PYUSD takes advantage of the Token-2022 standard with confidential transfers for enhanced privacy. Paxos maintains the smart contract and publishes monthly reserve reports.
Backing Type: Fiat-Backed
Fiat-backed stablecoins are collateralized by real-world assets held in bank accounts or custodied trust accounts — typically US dollars, Treasury bills, or cash equivalents. The issuer is responsible for maintaining 1:1 reserves and publishing regular attestations.