Table of Contents
Last updated: 26 October 2026.
PYUSD (PayPal USD) is PayPal's US dollar stablecoin, issued by Paxos Trust Company and redeemable 1:1 for dollars (PayPal, checked 26 Oct 2026). It is used in the PayPal and Venmo apps, on exchanges and on public blockchains such as Ethereum and Solana. The token itself pays nothing; the 4% reward on eligible balances is paid by PayPal.
Key Takeaways
- PYUSD is a dollar stablecoin issued by Paxos Trust Company for PayPal, redeemable 1:1 for US dollars (Paxos, checked 26 Oct 2026).
- PYUSD supply was $2.92B on 26 Oct 2026, eighth among dollar stablecoins, up from $2.78B a month earlier but below its $4.21B peak on 5 Mar 2026 (DefiLlama).
- Reserves are held 100% in US dollar deposits, US Treasuries and cash equivalents, and Paxos publishes reserve reports and attestations monthly (Paxos, 26 Oct 2026).
- PayPal shows a 4% annual reward rate on PYUSD held in the PayPal app "as of today"; the rate is variable and paid by PayPal, not by the token (PayPal, 26 Oct 2026).
- Most supply sits on Ethereum ($1.87B), then Solana ($692M) and Arbitrum ($273M) (DefiLlama, 26 Oct 2026).
PYUSD at a Glance
| Item | Value | Source, date |
|---|---|---|
| Brand | PayPal USD (PYUSD) | PayPal, 26 Oct 2026 |
| Issuer | Paxos Trust Company, N.A. (OCC national trust charter since 12 Dec 2025) | Paxos, 4 Aug 2026 |
| Launched | 7 August 2023 | PayPal newsroom |
| Reserves | US dollar deposits, US Treasuries, cash equivalents | Paxos, 26 Oct 2026 |
| Reserve reporting | Monthly reports and attestations | Paxos, 26 Oct 2026 |
| Supply | $2.92B, rank 8 | DefiLlama, 26 Oct 2026 |
| All-time high | $4.21B on 5 Mar 2026 | DefiLlama |
| Holder rewards (PayPal) | 4% annual reward rate, variable | PayPal, 26 Oct 2026 |
| Top chains | Ethereum $1.87B, Solana $692M, Arbitrum $273M, Flow $69M | DefiLlama, 26 Oct 2026 |
Who Issues PYUSD: PayPal vs Paxos
PayPal brands and distributes PYUSD; Paxos issues it and holds the reserves. At launch on 7 August 2023, Paxos was a New York trust company supervised by the NYDFS (PayPal newsroom).
On 12 December 2025 the OCC conditionally approved Paxos's conversion to a national trust bank, and Paxos says it completed the conversion the same day, so Paxos Trust Company, N.A. now issues PYUSD under OCC supervision (Paxos, 4 Aug 2026). Paxos also issues USDG through separate Singapore and EU entities.
What Backs PYUSD
Paxos says reserves are held 100% in US dollar deposits, US Treasuries and cash equivalents, in segregated, bankruptcy-remote accounts, and that it publishes PYUSD reserve reports and attestations each month (Paxos, checked 26 Oct 2026).
How to Buy, Send and Redeem PYUSD
In the PayPal and Venmo apps
Eligible US PayPal users can buy PYUSD with dollars 1:1 with zero fees and send it on PayPal with zero fees (PayPal, 26 Oct 2026). PayPal says PYUSD can move on and off PayPal to Venmo, external wallets and exchanges. Reward terms for Venmo balances are not stated on that page, so check the app before relying on them.
On exchanges and self-custody wallets
PYUSD is a standard token on Ethereum, Solana, Arbitrum and other chains, so it can be held in compatible self-custody wallets and traded on exchanges that list it. Always check you are sending on a network both sides support.
Institutional mint and redeem via Paxos
Businesses with a Paxos account can mint and redeem PYUSD directly. Our step-by-step guide covers it: how to mint and redeem PYUSD with Paxos.
PYUSD Rewards: What 4% Really Means
PayPal advertises 4% rewards on PYUSD held in the PayPal app, labelled an annual reward rate "as of today" that can change, with terms applying (PayPal, 26 Oct 2026). On-chain, the Morpho senPYUSD vault showed 5.28% APY on 26 Oct 2026, of which 3.06 points were token rewards and 2.23 points base yield (DefiLlama). Rates move daily; compare current options on our stablecoin yields page.
Rewards and the GENIUS Act yield ban
Section 4(a)(11) of the GENIUS Act bars a permitted issuer from paying holders interest or yield solely for holding the coin. The OCC's final rule, published on 23 Oct 2026 (91 FR 67000), dropped the proposed rebuttable presumption against payments through affiliates and partners.
Which Chains Support PYUSD
On 26 Oct 2026, DefiLlama counted $1.87B of PYUSD on Ethereum, $692M on Solana, $273M on Arbitrum and $69M on Flow, with smaller amounts on Polygon and Sei (DefiLlama). PayPal's page points users to low-cost networks such as Solana for transfers to external wallets (PayPal).
How Big Is PYUSD?
PYUSD supply was $2.92B on 26 Oct 2026, up from $2.78B a month earlier and below the $4.21B peak of 5 Mar 2026 (DefiLlama). For the quarter-by-quarter story, read our PYUSD Q2 2026 report.
PYUSD vs USDC vs USDG
| PYUSD | USDC | USDG | |
|---|---|---|---|
| Issuer | Paxos Trust Company, N.A. | Circle | Paxos Digital Singapore; Paxos Issuance Europe |
| Main regulator | OCC | Varies by entity | MAS; FIN-FSA under MiCA |
| Holder rewards | PayPal pays 4% on eligible balances | Through platforms | Through Global Dollar Network partners |
| Supply, 26 Oct 2026 | $2.92B | $71.64B | $3.08B |
| Top chain | Ethereum | Ethereum | X Layer |
Supply figures: DefiLlama stablecoins, 26 Oct 2026.
Risks and Limits
- Issuer and bank concentration: one issuer and its banking partners hold all reserves.
- Variable rewards: PayPal can change the 4% rate, and eligibility varies by region and account.
- Availability: PayPal's crypto features are not offered in every country.
- Smart contract and bridge risk when PYUSD moves across chains.
- No FDIC insurance: PYUSD is not a bank deposit.
FAQs
What is PYUSD?
PayPal's US dollar stablecoin, issued by Paxos Trust Company and redeemable 1:1 for dollars (PayPal).
Who issues PYUSD, PayPal or Paxos?
Paxos issues it and holds the reserves; PayPal brands and distributes it.
Is PYUSD safe?
It is fully reserved with monthly reports from Paxos, but it is not a bank deposit and is not FDIC insured. Issuer, custody and smart contract risks remain.
Does PYUSD pay interest?
The token pays nothing. PayPal shows a 4% reward rate on eligible balances, variable and subject to terms (PayPal, 26 Oct 2026).
How big is PYUSD?
$2.92B on 26 Oct 2026, eighth among dollar stablecoins (DefiLlama).
Which blockchains is PYUSD on?
Mostly Ethereum and Solana, then Arbitrum and Flow (DefiLlama, 26 Oct 2026).
Is PYUSD compliant with the GENIUS Act?
No stablecoin is licensed under the Act yet, because it takes effect on 18 Jan 2027 (OCC Bulletin 2026-50). Paxos is already OCC supervised; formal status depends on licensing once the Act applies. See our GENIUS Act explainer.
