Convert PYUSD to CHF

PayPal USD (PYUSD) is a regulated, US dollar-backed stablecoin issued by Paxos Trust Company and integrated into the massive PayPal ecosystem, offering a bridge between traditional finance and digital assets for millions of users.

Key takeaways

• PYUSD is a fully regulated stablecoin issued by Paxos Trust Company, backed 1:1 by US dollar deposits, US Treasuries, and similar cash equivalents.
• It is natively integrated into the PayPal and Venmo platforms, allowing users to buy, sell, hold, and transfer it seamlessly.
• The token operates on the Ethereum blockchain as an ERC-20 token and is also available on the Solana network, enabling fast, low-cost transactions.
• Its primary use cases include digital payments, remittances, and as a stable medium of exchange and store of value within the crypto ecosystem.
• PYUSD can be traded on major exchanges like BTCC for spot or contract trading against other cryptocurrencies.

What is PayPal USD? Key Specifications & Tokenomics

PayPal USD (PYUSD) is a fiat-collateralised stablecoin designed to combine the stability of the US dollar with the efficiency and programmability of blockchain technology.

Who created PayPal USD (PYUSD)?

PYUSD was launched in August 2023 through a collaboration between two major financial technology companies.

• Issuer: Paxos Trust Company: The actual issuer and custodian of the reserves is Paxos, a New York State-chartered trust company and regulated entity. Paxos is responsible for minting and burning PYUSD tokens, holding the equivalent US dollar reserves, and publishing monthly independent attestation reports to verify the full backing.
• Platform Integrator: PayPal, Inc.: PayPal, the global payments giant, integrated PYUSD directly into its core platform and its subsidiary, Venmo. This integration provides the vast user base of PayPal (hundreds of millions of accounts) with direct access to buy, hold, send, and spend PYUSD. The vision was led by PayPal's leadership to create a trusted digital currency native to its ecosystem.

How does PayPal USD (PYUSD) work?

PYUSD operates on a simple yet robust model centred on full collateralisation and regulatory compliance.

• 1:1 Asset Backing: For every PYUSD token in circulation, Paxos holds an equivalent value in US dollar deposits, short-term US Treasury securities, and similar cash equivalents. These reserves are held in bankruptcy-remote accounts, meaning they are separate from Paxos's corporate funds.
• Minting and Redemption: The supply of PYUSD is dynamic. When a user purchases PYUSD through PayPal or an authorised partner, Paxos mints new tokens. Conversely, when a user redeems PYUSD for US dollars, Paxos burns the corresponding tokens. This process ensures the circulating supply always matches the reserve holdings.
• Blockchain Operation: PYUSD exists as a digital token on programmable blockchains. On Ethereum, it is an ERC-20 token, allowing it to be used in DeFi protocols, smart contracts, and sent to any Ethereum wallet. Its availability on Solana offers an alternative for faster and cheaper transactions.
• Transparency and Audits: Paxos commits to transparency by engaging independent third-party accounting firms to perform monthly attestations. These reports are publicly available and confirm that the reserve assets match or exceed the total PYUSD supply.

What makes PayPal USD (PYUSD) unique and valuable?

PYUSD stands out in the crowded stablecoin market due to its unique blend of regulatory pedigree, massive distribution, and user-friendly design.

• Regulatory First Approach: As a product of a New York-regulated trust company (Paxos) and a globally licensed payments firm (PayPal), PYUSD is built with compliance at its core. This offers a high degree of trust for institutional and retail users concerned about regulatory risks associated with other stablecoins.
• Unparalleled Mainstream Access: Its native integration into PayPal and Venmo provides instant access to a user base that dwarfs most crypto-native platforms. This lowers the barrier to entry significantly, allowing people to use crypto without needing to understand private keys or external wallets initially.
• Dual-Blockchain Strategy: Launching on both Ethereum and Solana gives users and developers flexibility. They can choose Ethereum for its deep DeFi integration and security or Solana for high speed and low cost, making PYUSD versatile for various use cases.
• Trust Through Transparency: The commitment to monthly reserve attestations by a major accounting firm provides a level of transparency that is crucial for building trust in a stablecoin's peg to the US dollar.

What is PayPal USD (PYUSD) used for?

PYUSD serves as a digital dollar, facilitating a range of financial activities both within and outside the PayPal ecosystem.

• Digital Payments and Transfers: Users can send PYUSD to friends, family, or merchants instantly with low fees, both domestically and internationally, using their PayPal or Venmo accounts.
• Commerce: It can be used to pay millions of online merchants that accept PayPal, acting as a stable digital currency for purchases.
• Trading and Investing: Traders use PYUSD as a stable base currency to park funds on exchanges like BTCC between trades, avoiding the volatility of other cryptocurrencies. It is available for both spot and contract trading.
• DeFi and Web3: On blockchains like Ethereum, PYUSD can be supplied as liquidity in decentralised exchanges (DEXs), used as collateral for loans, or earned as yield in various DeFi protocols, thanks to its ERC-20 standard.
• Remittances: It offers a potentially faster and cheaper alternative for cross-border money transfers compared to traditional services.

How Is the PayPal USD (PYUSD) Ecosystem Developing?

The PYUSD ecosystem is expanding rapidly, driven by its foundational partnerships and growing third-party adoption.

• Core Platform Growth: Within PayPal and Venmo, features continue to evolve, such as enabling users to send PYUSD to external crypto wallets, increasing its utility beyond the walled garden.
• Exchange and Trading Support: PYUSD is listed on a growing number of centralised exchanges (CEXs) and decentralised exchanges (DEXs), providing deep liquidity and trading pairs. You can track its price on the BTCC price page.
• Web3 and DeFi Integration: An increasing number of DeFi protocols, wallets, and payment gateways are integrating PYUSD, recognising its regulatory clarity and stable value. Developers are building applications that leverage PYUSD for stable payments and settlements.
• Merchant Adoption: Efforts are underway to encourage more online and offline merchants to accept PYUSD directly, leveraging PayPal's existing merchant network.

How to mine PayPal USD (PYUSD)?

PYUSD cannot be mined. It is a centrally issued, fiat-collateralised stablecoin. New PYUSD tokens are created (minted) exclusively by Paxos Trust Company when users deposit US dollars through authorised channels like PayPal. There is no proof-of-work or proof-of-stake mechanism involved in its creation.

How to keep your PYUSD Coin safe?

While PYUSD itself is a stable asset, securing the keys to your tokens is paramount.

• For Beginners/Casual Users: Holding PYUSD within your PayPal or Venmo account is simple and benefits from PayPal's security infrastructure, including fraud protection and account insurance. This is suitable for smaller amounts and everyday use.

• For Active Traders/DeFi Users: If you hold PYUSD on an exchange like BTCC for trading, ensure you use strong, unique passwords and two-factor authentication (2FA).

• For Self-Custody (Advanced): For larger, long-term holdings, transfer your PYUSD to a non-custodial wallet where you control the private keys.

  • Hardware Wallets: Devices like Ledger or Trezor offer the highest security by keeping keys offline.
  • Software Wallets: Reputable mobile or browser wallets (e.g., MetaMask for Ethereum, Phantom for Solana) are good for more frequent access. Always download wallets from official sources.

• General Practices: Never share your private keys or seed phrase with anyone. Be vigilant against phishing scams and only interact with known, official websites and contracts.

How to buy PYUSD Coin?

PYUSD is a popular stablecoin listed on many exchanges. However, it is recommended to trade on a major platform like BTCC exchange for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide on how to buy USDT.
3. Start Trading: Go to the trading page and search for the spot trading pair PYUSD/USDT or the perpetual contract PYUSD/USDT.
4. Place an Order: Enter the amount of PYUSD you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.