PayPal USD (PYUSD) is a stablecoin, a type of cryptocurrency that strives to maintain a steady value over time relative to a reference asset, in this case, the U.S. dollar. PYUSD is fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. This means that each PYUSD token aims to be redeemable 1:1 for U.S. dollars. The issuance and custody of PayPal USD is performed by Paxos Trust Company, a regulated financial institution. PYUSD is designed to contribute to the potential that stablecoins offer for payments, providing inclusive, broad access to the financial system, and enabling fast and efficient money movement.

PayPal USD operates as a stablecoin, meaning it strives to maintain a stable value relative to the U.S. dollar. This is achieved by backing each PYUSD token with U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. Users have the ability to acquire, hold, and transfer PayPal USD within the PayPal app or on the PayPal site. Additionally, PYUSD can be sent to friends in the U.S. on PayPal without fees, or to wallet addresses that accept PYUSD. Users can also use PYUSD to facilitate purchases by selecting it at checkout, and convert any of PayPal's supported cryptocurrencies to and from PayPal USD.

PayPal USD seeks to provide a digital currency that can be built into public blockchains, linking the traditional economy and Web3. This makes it a useful tool for developers who aim to use PayPal USD as the payments layer to build new services and products on public blockchains. PYUSD is initially built on a blockchain known for its programmability, and is compatible with various exchanges, wallets, and dApps. Furthermore, PYUSD can be used for person-to-person payments, facilitating purchases, and converting to and from other supported cryptocurrencies.

PayPal USD was introduced as a new cryptocurrency on August 7, 2023. It was designed to contribute to the potential that stablecoins offer for payments and is fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. The issuance and custody of PayPal USD is performed by Paxos Trust Company. Since its introduction, PayPal USD has been made available to eligible U.S. PayPal customers, allowing them to transfer PYUSD between PayPal and compatible external wallets, send person-to-person payments using PYUSD, facilitate purchases with PYUSD, and convert any of PayPal's supported cryptocurrencies to and from PayPal USD.

As a stablecoin, PYUSD strives to minimize price volatility by pegging its value to a stable asset, in this case, the US dollar. This stability is intended to provide users with a sense of security when making transactions, as the value of their digital assets won't fluctuate wildly. PYUSD is designed with the intention of facilitating transactions. Compared to traditional wire transfers, stablecoin transfers, including cross-border and global transfers, can be quick, cost-effective, and can happen 24/7. PYUSD is designed with compatibility considerations for the Web3 ecosystem, which is considered the next generation of the internet. In these settings, users have more control over their data and interactions. Cryptocurrencies like PYUSD are designed to facilitate peer-to-peer transactions without intermediaries, with the intention of efficiency and cost considerations. PYUSD is designed for use in various contexts, such as remittances, international payments, and transactions with developers and creators, with the intention of supporting digital asset utilization.

As an ERC-20 token issued on the Ethereum blockchain, PYUSD is designed to be compatible with a wide range of web3 applications, wallets, and exchanges. This compatibility allows for seamless connections between fiat and digital currencies, making it easier for consumers, merchants, and developers to engage with the digital currency ecosystem. PYUSD is fully supported by U.S. dollar reserves, short-term U.S. Treasuries, and similar financial equivalents, which means it can be exchanged 1:1 for U.S. dollars. This stability and reliability may support the adoption of digital currencies by providing a familiar entry point for those new to the crypto space. PYUSD's integration with PayPal's existing digital payment infrastructure may enable the use of digital currencies in everyday transactions, potentially supporting their adoption.

The introduction of PYUSD into the PayPal ecosystem is part of the company's strategy to enhance and expand its payment services. It aims to provide an alternative to traditional banking systems, with the potential to impact commission costs and transaction times. Leveraging blockchain technology, which underpins PYUSD, PayPal strives to facilitate transactions with a focus on privacy and users' personal information due to decentralization and data encryption. The development of PYUSD also intends to facilitate the interaction between traditional and digital financial systems. By creating a bridge between fiat, digital, and cryptocurrencies, PayPal seeks to impact the complexity, accessibility, and reliability of the transaction process for many users and merchants. Thanks to blockchain technology, PYUSD aims to provide a user experience with the potential to impact transaction delays and commission costs. The concept also connects to Web3, allowing PYUSD to be easily integrated into modern blockchain applications, aiming to provide users broader possibilities for interaction with the digital world. This reflects PayPal's aim to explore the potential for flexibility and adaptation within the payment ecosystem.

PayPal USD (PYUSD) has participated in a variety of collaborations and partnerships that have influenced the industry. A notable collaboration is with universities and research institutions. This partnership strives to utilize the innovative research and technological expertise of these institutions to develop new products and services. For example, collaborations with universities have resulted in the development of dynamic training grips and autonomous driving technology. PYUSD also collaborates with government entities and non-profit organizations to address societal challenges and drive sustainability initiatives. These collaborations have led to improved business performance, the development of new techniques or technologies, and the expansion of the capabilities and expertise available to the firm. Additionally, PYUSD's collaborations with other companies in the industry have contributed to the creation of innovative solutions to systemic problems, thereby contributing to PYUSD's presence in the cryptocurrency industry.