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[PayPal]

PYUSD

Grade
A-
Date of Rating:
October 10th, 2023
Last Change:
October 10th, 2023
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
N/A
[M]
N/A
[I]
N/A
[D]
N/A
[G]
N/A
[E]
N/A
PYUSD Price
Last Update:
08/05/57577 08:40:00
$0.999638
Market Cap
$1,028,057,736
24h Volume
$26,351,480
Collater­alization
100%
Type of Peg
Fixed - To Fiat
Type of Backing
Fiat
Data provided by
Coingecko
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
-
[M]
-
[I]
-
[D]
-
[G]
-
[E]
-
Core Team
  • Hidden Name
  • Hidden Name
Audits
Native Chains
  • Chain
Links
Full Report
Scoring Guidelines
[S]
[M]
[I]
[D]
[G]
[E]
0.00
0.00
0.00
0.00
0.00
0.00
PayPal
A-
  • Paxos, the issuer of PYUSD, is regulated as a stablecoin issuer by the NYDFS, and therefore subject to stringent guidelines and monitoring requirements. PYUSD is identical in design to its siblings USDP and BUSD.
  • PYUSD’s reserves comprise overnight reverse repos collateralized by US Treasuries (97%) and cash (3%) in fully segregated accounts.
  • PYUSD is designed to be institutional-grade, regulatorily compliant and customer protection-focused, but it is not an actively traded stablecoin. It is most suitable for (a) remitting, receiving, and holding funds on PayPal and (b) passive stablecoin holders who want to hold US Dollars but cannot or do not want to hold them in a bank account.

PYUSD's rating can be upgraded from A- to A by:

  • disclosing its reserve custodians and the amounts held by them OR
  • maintaining a consistent, tight peg over a 180-day period.
 
PayPal
Stability

The Stability factor is evaluated on the following:

  1. Reserves Management - Quality, quantity, storage and segregation of reserve assets
  2. Market Feedback - Indicators of market's confidence in a stablecoin derived from price and trade data
  3. Mechanism - Stabilization methods that protect the stablecoin 
PayPal
Management

The Management factor is evaluated on the following:

  1. Restrictions - What deterrents exist to prevent key personnel of stablecoin projects from unethical and illegal behavior?
  2. Negative Track Record - Have key personnel been involved in scams, frauds or other illegal activities?
PayPal
Decentralization

This factor evaluates censorship resistance using indicators like regulatory oversight, asset custody, and governance controls.

Decentralization is not a key objective for Paxos Trust Company, who prioritizes compliance over decentralization. Therefore, this factor is not assessed.

PayPal
Governance

The Governance factor for fiat-backed stablecoins is evaluated on the following:

  1. Holder Protection - What rules, statutes or code exist to protect interests of stablecoin holders?
  2. Reserves Verification - What checks are done to ensure existence of reserves?
  3. Redemptions - Do issuers have transparent and reasonable redemption terms?