PayPal announced the launch of a US dollar-denominated stablecoin, PayPal USD (PYUSD) designed to contribute to the opportunity stablecoins offer for payments. It is 100% backed by US dollar deposits, short-term US Treasuries and similar cash equivalents. PYUSD is redeemable 1:1 for US dollars and is issued by Paxos Trust Company. It will be available to consumers, merchants and developers to connect fiat and digital currencies.
“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” said Dan Schulman, president and CEO of PayPal, in a statement.
Beginning in September 2023, Paxos will publish a public monthly Reserve Report for PYUSD that outlines the instruments composing the reserves. Paxos will also publish a public third-party attestation of the value of PayPal USD reserve assets. The attestation will be issued by an independent third-party accounting firm and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA).