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Is the stablecoin PYUSD safe? Analysis of the purpose behind PayPal launches PYUSD
Home web3.0 Is the stablecoin PYUSD safe? Analysis of the purpose behind PayPal launch of PYUSD

Is the stablecoin PYUSD safe? Analysis of the purpose behind PayPal launch of PYUSD

Jul 16, 2025 am 06:30 AM
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Is the stablecoin PYUSD safe? Analysis of the purpose behind PayPal launches PYUSD

PYUSD is a US dollar-anchored stablecoin launched by global payment giant PayPal in 2023, and is issued and managed by Paxos Trust. This currency aims to integrate traditional financial payment systems with blockchain to realize the application of stablecoins in the mainstream payment field . Its launch marks the formal participation of global fintech companies in the construction of cryptocurrency infrastructure.

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1. PYUSD security analysis

  • Hosted by Paxos: PYUSD is not independently issued by PayPal, but is the issuer by Paxos Trust, which has been licensed under regulatory authority, and its fund reserves are regularly publicly audited .
  • 100% USD reserve support: PYUSD reserves are composed of US Treasury bonds and cash, ensuring that every PYUSD is backed by real assets.
  • Regulated by the United States: PYUSD complies with the regulatory requirements of the New York Department of Financial Services (NYDFS) and is one of the most compliant stablecoins .
  • Supports on-chain monitoring: It is deployed on the Ethereum main network (ERC20), and users can publicly view contracts and on-chain circulating data.

2. The main uses of PYUSD

  • Payment settlement: As a digital payment method in PayPal's own ecosystem, PYUSD can be used in account balance payment, merchant settlement and other scenarios.
  • Cross-border transfer: PYUSD provides a stable value basis, suitable for cross-border capital circulation, and avoid fiat currency exchange rate fluctuations.
  • Web3 Ecological Development: PayPal plans to embed PYUSD into wallet, DeFi, NFT and other chain scenarios to achieve the extension of digital asset usage scenarios.
  • Franchise Currency Exchange Bridge: Users can directly swap PYUSD with US dollar balances through PayPal, lowering the entry threshold.

Is the stablecoin PYUSD safe? Analysis of the purpose behind the launch of PYUSD - php Chinese

3. Analysis of the motivation behind PayPal’s launch of PYUSD

1. Expand the influence of payment

  • As a global payment giant, PayPal launched PYUSD to build a payment network compatible with on-chain assets to seize the dominance of stablecoins.
  • Compared with USDT and USDC, PYUSD has a wider merchant network and user portal.

2. Integration with traditional finance

  • PYUSD is regarded as an important bridge connecting encryption and fiat currency through legal and compliant methods.
  • Promote the digitalization of the US dollar and compete for global clearing influence from the payment level.

3. Seize the Web3 infrastructure ecosystem

  • PayPal plans to deploy infrastructure such as on-chain wallets, NFT markets, and digital identity, and PYUSD will become its ecological stablecoin entrance.
  • Stable coins with strong payment attributes will complement traditional banking services.

4. PYUSD deficiency and risk points

  • The current circulation scale is small, and the market acceptance is limited compared with USDT and USDC .
  • The restrictions on use are mainly concentrated in the United States, and some international regions have not yet been fully open for use.
  • Users need to rely on PayPal account to operate, and the degree of decentralization is lower than that of stablecoins such as DAI .

Summary: As a US dollar stablecoin launched by PayPal, PYUSD has significant advantages in compliance, security and brand endorsement. Its core value lies in expanding the application of stablecoins in real payment and cross-border scenarios , but it is still in the early stage of expansion. Users need to pay attention to their compliance promotion and ecological integration path in markets in various countries.

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