PYUSD is PayPal's regulated dollar stablecoin issued by Paxos, redeemable 1:1 and backed by U.S. Treasury reverse repos and cash deposits. The static profile records its US Dollar peg mechanism as: Direct 1:1 redemption through PayPal/Paxos.

As of Oct 24, 2026, Pharos grades PYUSD B (73/100) on its Safety Score. Pharos's reviews record that the issuer or an admin can freeze individual holders' balances, and direct redemption is limited to customers the issuer has verified. That grade is in the Score's upper band, which does not rule out losses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.

Pharos records PYUSD's reserves as of Aug 31, 2026 as 83.2% Overnight reverse repurchase agreements collateralized by U.S. Treasury obligations, 12.9% U.S. Treasury bills, and 3.8% Cash held for authorized token holders. Reserve evidence: Independent Audit by KPMG, latest period ending Aug 31, 2026. Pharos classifies the backing as Real-World Asset Backed.

Based on tracked contract metadata and blacklist coverage, issuer or admin freeze controls are recorded. Live freeze and blacklist events for PYUSD, when applicable, appear in the live dossier on this page.

Under the route Pharos reviewed on Jun 10, 2026, customers the issuer has verified can redeem PYUSD for a single stable asset, such as cash or a stablecoin. Settlement is same-day. The reviewed terms charge no percentage redemption fee. Whether a given holder qualifies is set by the route's own terms, not by this summary.