{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "what-is-pyusd",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-pyusd/",
  "collection": "stablecoins",
  "title": "What is PYUSD? Issuance, backing and controls",
  "description": "Understand PayPal USD through Paxos issuer disclosures, reserve-report scope and the difference between a payment token and a bank account.",
  "aliases": [
    "PYUSD",
    "PayPal USD"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:15:23.891Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "PayPal USD, or PYUSD, is a dollar stablecoin identified in Paxos’s disclosures as issued by Paxos Trust Company N.A. A token balance should be evaluated through its issuer terms, exact network deployment and dated reserve evidence. The PayPal name does not by itself make the token an insured bank deposit or a yield-bearing investment.",
    "claimId": "what-is-pyusd-quick-answer",
    "sourceIds": [
      "paxos-pyusd",
      "fdic-crypto"
    ]
  },
  "keyFacts": [
    {
      "label": "Issuer disclosure",
      "value": "Paxos’s retrieved transparency page names Paxos Trust Company N.A. as issuer.",
      "sourceIds": [
        "paxos-pyusd"
      ],
      "id": "issuer-disclosure",
      "claimId": "what-is-pyusd-fact-issuer-disclosure"
    },
    {
      "label": "Report types",
      "value": "The page distinguishes Paxos portfolio reports from independent examinations.",
      "sourceIds": [
        "paxos-pyusd"
      ],
      "id": "report-types",
      "claimId": "what-is-pyusd-fact-report-types"
    },
    {
      "label": "Coverage",
      "value": "US deposit insurance does not insure crypto assets themselves.",
      "sourceIds": [
        "fdic-crypto"
      ],
      "id": "coverage",
      "claimId": "what-is-pyusd-fact-coverage"
    }
  ],
  "prerequisites": [
    "cash-backed-stablecoins"
  ],
  "sections": [
    {
      "id": "evidence",
      "heading": "Read the dated reserve documents",
      "sourceIds": [
        "paxos-pyusd"
      ],
      "paragraphs": [
        "Paxos publishes reserve-related materials for PYUSD. Its transparency page identifies portfolio composition reports released promptly after month-end as self-reported and not independently reviewed.",
        "Use the specific examination report, period and scope when describing external assurance. A page listing both report types does not make every number on the page independently examined."
      ]
    },
    {
      "id": "token",
      "heading": "Check the actual asset before sending",
      "sourceIds": [
        "erc20",
        "paxos-pyusd"
      ],
      "paragraphs": [
        "A familiar symbol does not uniquely identify a contract. Verify the issuer-supported deployment and the receiving service’s supported network before transferring.",
        "A token balance on a chain and a balance displayed inside a payment platform can have different custody and access conditions. Establish which product is being discussed."
      ]
    },
    {
      "id": "limits",
      "heading": "Separate issuer evidence from a universal safety claim",
      "sourceIds": [
        "paxos-pyusd",
        "fdic-crypto"
      ],
      "paragraphs": [
        "Reserve transparency can help a reader inspect backing at a stated date. It does not eliminate operational, custody, contract or liquidity dependencies.",
        "The issuer identity here reflects the page retrieved October 2, 2026. It should not be silently backdated to older reports that may name an earlier legal entity."
      ]
    }
  ],
  "faq": [
    {
      "question": "Are all PYUSD reserve documents independent audits?",
      "answer": "No. Paxos distinguishes its own portfolio reports from independent examination materials. Read each document’s title, date and assurance scope.",
      "sourceIds": [
        "paxos-pyusd"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-pyusd-quick-answer",
      "articleSlug": "what-is-pyusd",
      "statement": "PayPal USD, or PYUSD, is a dollar stablecoin identified in Paxos’s disclosures as issued by Paxos Trust Company N.A. A token balance should be evaluated through its issuer terms, exact network deployment and dated reserve evidence. The PayPal name does not by itself make the token an insured bank deposit or a yield-bearing investment.",
      "sourceIds": [
        "source-14f3159cb9c7a996",
        "source-ee0694126db6bd5b"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-14f3159cb9c7a996",
          "locator": "Reserve reports; Issuer disclosures"
        },
        {
          "sourceId": "source-ee0694126db6bd5b",
          "locator": "Deposit insurance; Non-deposit products; Crypto companies"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Read Paxos current page issuer line naming Paxos Trust Company N.A., self-reported portfolio reports and separate KPMG/Withum examination listings. The name is dated to retrieval and not retroactively assigned to old reports.",
          "Clarified that prompt post-month-end portfolio composition reports are self-reported rather than implying an older historical report class. FDIC scope does not confer insurance from the PayPal name."
        ]
      }
    },
    {
      "id": "what-is-pyusd-fact-issuer-disclosure",
      "articleSlug": "what-is-pyusd",
      "statement": "Issuer disclosure: Paxos’s retrieved transparency page names Paxos Trust Company N.A. as issuer.",
      "sourceIds": [
        "source-14f3159cb9c7a996"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-14f3159cb9c7a996",
          "locator": "Reserve reports; Issuer disclosures"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Read Paxos current page issuer line naming Paxos Trust Company N.A., self-reported portfolio reports and separate KPMG/Withum examination listings. The name is dated to retrieval and not retroactively assigned to old reports.",
          "Clarified that prompt post-month-end portfolio composition reports are self-reported rather than implying an older historical report class. FDIC scope does not confer insurance from the PayPal name."
        ]
      }
    },
    {
      "id": "what-is-pyusd-fact-report-types",
      "articleSlug": "what-is-pyusd",
      "statement": "Report types: The page distinguishes Paxos portfolio reports from independent examinations.",
      "sourceIds": [
        "source-14f3159cb9c7a996"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-14f3159cb9c7a996",
          "locator": "Reserve reports; Issuer disclosures"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Read Paxos current page issuer line naming Paxos Trust Company N.A., self-reported portfolio reports and separate KPMG/Withum examination listings. The name is dated to retrieval and not retroactively assigned to old reports.",
          "Clarified that prompt post-month-end portfolio composition reports are self-reported rather than implying an older historical report class. FDIC scope does not confer insurance from the PayPal name."
        ]
      }
    },
    {
      "id": "what-is-pyusd-fact-coverage",
      "articleSlug": "what-is-pyusd",
      "statement": "Coverage: US deposit insurance does not insure crypto assets themselves.",
      "sourceIds": [
        "source-ee0694126db6bd5b"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-ee0694126db6bd5b",
          "locator": "Deposit insurance; Non-deposit products; Crypto companies"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:23.891Z",
        "reviewer": "Independent automated verification agent verify_bitcoin_stablecoins_100",
        "notes": [
          "Read Paxos current page issuer line naming Paxos Trust Company N.A., self-reported portfolio reports and separate KPMG/Withum examination listings. The name is dated to retrieval and not retroactively assigned to old reports.",
          "Clarified that prompt post-month-end portfolio composition reports are self-reported rather than implying an older historical report class. FDIC scope does not confer insurance from the PayPal name."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "paxos-pyusd",
      "label": "PayPal USD Transparency",
      "publisher": "Paxos",
      "url": "https://www.paxos.com/pyusd-transparency",
      "locator": "Reserve reports; Issuer disclosures",
      "note": "PYUSD issuer disclosures and dated reserve attestations.",
      "version": null,
      "checkedAt": "2026-10-02T17:03:43.402Z",
      "contentSha256": "e0c17220177f94d461c34fa82061459cdf6a83733efc0597dda6966a477852a6",
      "recordId": "source-14f3159cb9c7a996"
    },
    {
      "id": "fdic-crypto",
      "label": "What the Public Needs to Know About FDIC Deposit Insurance and Crypto Companies",
      "publisher": "Federal Deposit Insurance Corporation",
      "url": "https://www.fdic.gov/news/fact-sheets/crypto-fact-sheet-7-28-22.html",
      "locator": "Deposit insurance; Non-deposit products; Crypto companies",
      "note": "US FDIC coverage distinguishes insured-bank deposits from crypto products and nonbank failures.",
      "version": "2022 fact sheet; scope limited to US FDIC insurance",
      "checkedAt": "2026-10-02T17:03:44.009Z",
      "contentSha256": "d557d6afa9687a45b0f920160afd0bc4eff6173d52310ff2d6dae0805a91c9d0",
      "recordId": "source-ee0694126db6bd5b"
    },
    {
      "id": "erc20",
      "label": "ERC-20 Token Standard",
      "publisher": "Ethereum Improvement Proposals",
      "url": "https://eips.ethereum.org/EIPS/eip-20",
      "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer",
      "note": "Token supply, displayed units and balance accounting.",
      "version": "ERC-20",
      "checkedAt": "2026-10-02T17:03:45.826Z",
      "contentSha256": "98bda5e4707841a68684879878c4c165fdaa47d89ed69ebf232ab9be06ff050e",
      "recordId": "source-ac4ad503a55127bb"
    }
  ],
  "related": {
    "articles": [
      "attestations-audits-proof-of-reserves",
      "stablecoin-contract-addresses",
      "stablecoin-bank-deposit-insurance"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “What is PYUSD? Issuance, backing and controls.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-pyusd/"
}