PayPal USD (PYUSD): tokenomics, risks and score
A dollar stablecoin issued by Paxos on behalf of PayPal, notable mainly as the first from a major consumer payments company.
What PayPal USD is, and what it does
This is a stablecoin. It is designed to hold a fixed value, almost always one US dollar, so it can be used for payments and trading without the price moving underneath you.
What the PYUSD token itself does: Fully reserved in cash, cash equivalents and US Treasuries, issued under New York State Department of Financial Services supervision.
Where it runs: Ethereum and Solana. Mechanism: Centrally issued, fiat backed. It has been running since 2023, so roughly 3 years.
The facts
- TICKER
- PYUSD
- SECTOR
- Stablecoins
- CHAIN
- Ethereum and Solana
- LAUNCHED
- 2023, so around 3 years of operating history
- MECHANISM
- Centrally issued, fiat backed
- MAXIMUM SUPPLY
- Minted and burned on demand against reserves
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- Single key
- VESTING
- Complete
- LIQUIDITY BAND
- Small cap. Limited venue coverage. Check the order book before assuming you can exit.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
Supply expands and contracts by design rather than following a fixed schedule. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
Fully reserved in cash, cash equivalents and US Treasuries, issued under New York State Department of Financial Services supervision.
A single key controls the contract. Whoever holds it can change the rules or move funds. Ownership is heavily concentrated. A small number of wallets hold enough to determine the price on their own.
Where it is strong and where it is not
- Audited, with published reports
- Vesting is complete, so there is no scheduled supply overhang
- Heavily concentrated ownership means a few wallets control the outcome
- The token captures no protocol revenue, so its value rests on sentiment
- Upgrade control sits with a small group, so the rules can change
- Thin liquidity. Check order book depth before assuming you can exit
Incident history
No major exploit, collapse or regulatory action on record against this asset.
Our read
The main risk
Limited liquidity outside PayPal's own ecosystem, and a centralised issuer with freeze capability.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.