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PayPal launches Dollar-pegged stablecoin, PayPal USD

Published date:

February 2, 2026

PayPal launches Dollar-pegged stablecoin, PayPal USD

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In the words of Dan Schulman, CEO of PayPal, “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.”

Fintech giant PayPal announced its plans to launch a new stablecoin, PayPal USD (PYUSD), on the Ethereum blockchain to bridge the gap between fiat and Web3 markets.

Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023

In the press release, PayPal revealed that PYUSD’s reserves are backed by USD deposits, US Treasuries, and similar fiat assets. As its name suggests, PYUSD is pegged to the US Dollar (USD), and is issued by Paxos Trust Company, the company responsible for minting Binance USD (BUSD) until February 2023.

Starting September 2023, PayPal will publish monthly reports on PayPal USD’s reserves along with third-party attestation records on the value of the stablecoin’s reserve assets. PayPal also highlighted that the firm secured a BitLicense from the New York State Department of Financial Services (NYDFS) in June 2022.

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With the release of PYUSD, PayPal now supports five cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). PayPal claimed that eligible clients residing in the US can transfer their PYUSD assets to other US-based users without paying any transaction fees. Unfortunately, PayPal USD and its associated services will not be available for clients who reside in Hawaii.

Written by

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

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How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Editorial Process and Risk Warning.

Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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