PayPal is an online payment service used by over 400 million people worldwide. In August 2023, PayPal issued its own stablecoin: "PYUSD (PayPal USD)."

As of 2026, PYUSD operates on Ethereum, Solana, and Stellar, and is expanding into payments and transfers within the PayPal and Venmo apps, as well as payments for AI infrastructure. WEEX supports PYUSD/USDT spot trading. This article explains the mechanics of PYUSD, how it compares to other stablecoins, and the latest trends for 2026.

What is PYUSD?

Official Name: PayPal USD (PYUSD)

Issuer: Paxos Trust Company (regulated by the NYDFS)

Peg: 1 PYUSD = 1 USD (fully backed)

Backing Assets: US dollar cash, short-term U.S. Treasuries, and cash equivalents

Supported Chains: Ethereum (ERC-20), Solana, and Stellar

Primary Use Cases: Payments and transfers on PayPal and Venmo, DeFi, and AI infrastructure payments

Circulating Supply: Approximately 800–900 million USD (as of May 2026)

While PYUSD is a stablecoin issued under the PayPal brand, its actual issuance and management are handled by Paxos Trust Company. Paxos also issues PAXG (a gold-backed token) and is well-regarded as a regulated digital asset infrastructure firm.

Differences from USDT and USDC

The primary differentiator for PYUSD is the trust associated with the PayPal brand and its regulatory transparency. USDT (Tether) is issued offshore, and concerns regarding the transparency of its reserves are sometimes raised. PYUSD undergoes monthly audits under NYDFS regulation and clearly discloses its backing assets. However, its circulating supply remains small compared to USDT and USDC.

Key Trends in 2026

Pay with Crypto: Over 100 Cryptocurrencies Now Available for PayPal Payments

In July 2025, PayPal rolled out "Pay with Crypto" for U.S. merchants. Users can make online payments using over 100 cryptocurrencies, including BTC, ETH, SOL, and PYUSD, with transaction fees reduced by up to 90% compared to previous methods. This service symbolizes the shift from simply "holding" crypto to using it for daily payments.

AI×PYUSD: Payments for GPU Purchases and AI Infrastructure

In January 2026, USDai (USD.ai), a developer of on-chain credit protocols for AI infrastructure, announced a partnership with PayPal. Through a 1 billion USD incentive program targeting GPU purchases and AI operational costs, they are offering a 4.5% annual yield on PYUSD. The design of "purchasing AI infrastructure with stablecoins while earning yield" is directly connected to the biggest theme of 2026: AI×blockchain. Furthermore, PayPal established a new "Payment Services & Crypto" division in 2026 to strategically strengthen its crypto initiatives, including PYUSD, with expectations for expanded holding incentives through consumer apps like Venmo.

PYUSD on Stellar and Global Payment Infrastructure

On May 27, 2026, the same day the DTCC×Stellar partnership was announced, Cash App revealed its deployment of USDC on Stellar. PYUSD is already operating on Stellar, creating an environment where it can function on Stellar's RWA infrastructure and instant international remittance network.

Of particular note is its use in foreign exchange (FX). On Stellar, Wirex (a Visa principal member) has deployed dual payments for USDC and EURC (a euro-pegged stablecoin), and with PYUSD handling dollar-denominated transfers while EURC bridges the Eurozone, instant multi-currency payments are becoming a reality. By connecting PayPal's 400 million user base to this infrastructure, we are nearing a world where cross-border payments, which were previously slow and costly, can be completed in seconds for almost no cost.

Collaboration with Visa and Mastercard

PYUSD is integrated with Visa's stablecoin settlement network, and efforts are underway to incorporate stablecoin payments into traditional card payment infrastructure. Mastercard is also expanding its partnership with PayPal, further broadening the role of PYUSD as a bridge between blockchain transfers and traditional financial infrastructure.

Precautions for Stablecoins

No Price Volatility: PYUSD is a stablecoin pegged to 1 USD. When trading PYUSD/USDT on WEEX, the price difference is nearly zero, so it is not an investment vehicle intended for capital gains. It is intended for use as a medium for payments, transfers, and DeFi operations.

Issuer Risk: While the fact that Paxos is regulated by the NYDFS is a reassuring factor, it is important to understand the reserve protection mechanisms in the unlikely event of a Paxos bankruptcy. Backing assets are segregated and managed as customer assets.

Low Circulating Supply: Compared to the 143 billion USD supply of USDT, PYUSD's supply of approximately 800–900 million USD means there is a difference in liquidity. Please be aware that liquidity may be thin during large-scale transactions.

Conclusion

PYUSD is an NYDFS-regulated stablecoin issued by PayPal, operating on Ethereum, Solana, and Stellar. In 2026, movements embodying the "practical application of stablecoins" are accelerating through daily payments via Pay with Crypto, AI×PYUSD (GPU purchases and 4.5% APY), and operations on the DTCC×Stellar network. While it is not an investment vehicle for capital gains, its presence as a tool for payments, transfers, and DeFi operations is growing. WEEX supports PYUSD/USDT spot trading.

Frequently Asked Questions

Q. Which is safer, PYUSD or USDT?

Both are stablecoins pegged to the U.S. dollar, but PYUSD has an advantage in terms of transparency. PYUSD is issued by Paxos under the regulation of the NYDFS (New York Department of Financial Services) and publishes monthly audits. USDT is issued by the offshore entity Tether, which operates under a different regulatory framework. However, USDT has an overwhelmingly larger circulating supply and liquidity, so it is practical to choose based on your specific needs.

Q. Can I make a profit by trading PYUSD on WEEX?

Because PYUSD is a stablecoin pegged to 1 USD, you cannot aim for capital gains through price fluctuations. PYUSD/USDT trading on WEEX is primarily intended as a gateway for payments, asset preservation, and DeFi operations. If you wish to trade based on price volatility, please consider volatile assets such as BTC, ETH, or XRP.

Q. Can I use PYUSD from Japan?

WEEX allows for PYUSD/USDT spot trading. However, there are currently restrictions on using PYUSD within the PayPal app in Japan. While you can acquire, hold, and trade PYUSD through WEEX, please check for the latest information regarding the rollout of PayPal's PYUSD services for the Japanese market.

Disclaimer

WEEX and its affiliates provide digital asset exchange services, including derivatives and margin trading, only to qualified users in jurisdictions where legally permitted. This content is for general information purposes only and does not constitute investment advice. Always consult with a professional before trading. Cryptocurrency trading carries high risk, and you may lose all of your invested capital. By using WEEX services, you acknowledge that you agree to all relevant risks, Terms of Service, and Risk Disclosure. Please trade at your own discretion and within your means.