PYUSD
PYUSD, short for PayPal USD, is a US-dollar stablecoin issued by Paxos Trust Company, a regulated trust. It is designed to hold a steady value of one US dollar, so each token aims to trade at par with the dollar rather than float like other crypto assets.
Each PYUSD is meant to be backed by reserves held one-to-one, made up of US dollar deposits, US Treasuries, and similar cash-equivalent holdings. Holders can redeem tokens for dollars at that rate. Paxos publishes regular attestations that report on the reserves behind the tokens in circulation.
PYUSD launched with PayPal and runs as a token on the Ethereum blockchain, with availability on other blockchains as well. Like any stablecoin, it carries risk. Its value depends on the reserves backing it and on the issuer honoring redemptions, and a token can move away from its one-dollar target under market stress.
Related terms: Stablecoin · USDC yield
On Peak Money: About Peak Money
