PayPal USD
PayPal USD (PYUSD) is a stablecoin designed for payments and is 100% backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents.
PYUSD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company.
Background
PayPal USD is issued by Paxos Trust Company, a fully licensed limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services. PYUSD is issued as a fiat-backed stablecoin on the Ethereum blockchain. Stablecoins can enable fast and efficient money movement and are programmable, offering developers a digital currency that can be built into public blockchains and can help link the traditional economy and Web3.
Launch
PayPal USD announced the launch of its stablecoin on August 7 2023.
How does it work?
Paxos-issued stablecoin PYUSD and its reserves are subject to strict regulatory oversight by the New York State Department of Financial Services (NYSDFS). Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents – meaning that customer funds are available for 1:1 redemption. Paxos’ customer assets are also protected from bankruptcy and fully segregated from corporate assets. Even in the case of PayPal or Paxos enterprise failure, customers would be able to recoup all PYUSD funds enabled by NYDFS. Paxos publishes a public monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves. Paxos also publishes a public third-party attestation of the value of PayPal USD reserve assets. Attestation reports are issued by an independent third-party accounting firm and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA).
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