PayPal USD
Crypto Overview
Overview
PayPal USD (PYUSD) is a fully-reserved stablecoin launched by PayPal in August 2023. It is a regulated digital dollar stablecoin issued in partnership with Paxos Trust Company and built on the Ethereum blockchain. Each PYUSD token is backed 1:1 by US Dollar deposits, US Treasury Bills, and similar cash equivalents.
Purpose and Utility
PYUSD's primary purpose is to serve as a digital payment rail and stable store of value. It enables users to transfer value globally, make payments, and participate in digital commerce through PayPal's ecosystem. The stablecoin is designed to maintain a stable 1:1 peg with the US Dollar.
Business Model and Operations
The stablecoin operates under clear regulatory oversight, with Paxos Trust Company managing the reserves and ensuring full backing of all tokens. PayPal generates revenue through transaction fees and merchant services, not through lending or interest-bearing activities.
Real-World Adoption
PYUSD has achieved significant integration within PayPal's existing payment infrastructure, with support for transfers, payments, and conversions. The token is available to eligible PayPal US customers and can be purchased, sold, and held through PayPal's platform. It has also gained listings on major cryptocurrency exchanges.
Development and Governance
The stablecoin operates on the Ethereum blockchain as an ERC-20 token. Regular attestations of reserves are performed by independent auditors to verify the 1:1 backing. The project maintains transparent documentation and clear operational procedures.
Token Distribution
PYUSD tokens are minted based on direct demand and backed by corresponding dollar deposits. There is no pre-mining or founder allocation, as tokens are created and burned based on user deposits and withdrawals.
Crypto Impact
To assign a comfort level investing in PayPal USD from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to PayPal USD.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.