What Is PYUSD? A Guide to PayPal's Stablecoin

What is PYUSD?

PYUSD is a stablecoin pegged 1:1 to the U.S. dollar, issued in partnership with PayPal and backed by a mix of U.S. dollar deposits, short-term U.S. Treasuries, and similar cash-equivalent assets. Like other stablecoins, it's designed to combine the price stability of the dollar with the speed and transparency of blockchain-based transactions.

Who actually issues PYUSD?

PYUSD is issued by Paxos Trust Company, a regulated financial institution, under a New York Trust Charter. Paxos handles the minting and redemption of PYUSD, meaning new tokens are only created when backed 1:1 by reserve assets — a structure designed to maintain the stablecoin's peg and give holders confidence in its backing.

How PYUSD is used in onchain finance

Beyond peer-to-peer payments, PYUSD is increasingly used as a settlement currency in onchain finance applications — including invoice financing and liquidity pools, where its combination of stability and regulated backing makes it a practical choice for institutional-grade transactions. Bulla Network, for example, operates a PYUSD liquidity pool used to settle freight and trade finance invoices onchain, with minting supported directly through Paxos.

Why the issuer matters

Not all stablecoins are backed or regulated the same way. Understanding who issues a stablecoin — and how it's backed — is a useful first step before using it for payments, invoicing, or as part of a yield strategy. PYUSD's structure, backed by Paxos and associated with PayPal, is one example of a stablecoin built with regulatory compliance and institutional use in mind.

To learn more about how Bulla Network uses PYUSD in its liquidity pools, visit our Protocol page.