PYUSD, issued by Paxos Trust Company, LLC, is a U.S. dollar-denominated, fiat-collateralized stablecoin that is redeemable 1:1 for U.S. dollars (USD) and distributed to consumers through PayPal and Venmo apps. [S1][S2]

Each PYUSD references one U.S. dollar (USD) and is fully backed by USD bank deposits, U.S. Treasuries guaranteed by the full faith and credit of the United States Government, and U.S. Treasury reverse repurchase agreements, excluding money market funds. [S1][S2] The token is price-stable and does not rebase or accrue interest to holders. [S2][S3] No fees apply to buy, sell, hold, or transfer PYUSD to eligible PayPal users; conversions to non-USD currencies carry a spread. [S1][S4]

PYUSD is issued by Paxos Trust Company, LLC, which operates subject to oversight and regulation by the New York Department of Financial Services (NYDFS), with custody and trading services for PayPal users provided by Paxos Trust Company, N.A. [S1][S3] PYUSD is not legal tender and holdings are not deposits. [S2] Access requires a PayPal or Venmo account, identity verification, and crypto opt-in, and PYUSD is available in about 70 markets. [S1][S4] Holders may redeem directly with Paxos at $1.00 per token; PayPal Digital holds customer balances as agent in segregated omnibus accounts held apart from corporate assets. [S2]

PYUSD launched as an Ethereum ERC-20 token and a Solana SPL token, with Paypal Crypto terms naming Ethereum, Solana, Arbitrum, and Stellar as supported blockchains. [S2][S5][S6] Paxos mints and redeems tokens against reserves and publishes monthly reserve composition reports with independent third-party attestations. [S4]

<Sources
  retrievedAt="2026-06-23"
  items={[
    { id: "S1", url: "https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd" },
    { id: "S2", url: "https://www.paypal.com/us/legalhub/paypal/cryptocurrencies-tnc" },
    { id: "S3", url: "https://www.paypal.com/us/brc/article/understanding-stablecoins" },
    { id: "S4", url: "https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd" },
    { id: "S5", url: "https://developer.paypal.com/dev-center/pyusd/" },
    { id: "S6", url: "https://www.paypal.com/us/cshelp/article/what-is-pyusd-and-how-do-i-use-it-help1005" },
  ]}
/>


# PYUSD Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of a project's on-chain deposits and/or the tokenized value of user deposits made off-chain. For PYUSD, this metric represents the total market value of the circulating supply of the stablecoin across all supported blockchain networks. It is used as a leading indicator for the adoption and liquidity of the asset, accounting for all tokens issued and adjusting for unreleased supply held in designated treasury accounts.

## 2. Data sources

- **Blockchain events**: `SupplyIncreased`, `SupplyDecreased`, and ERC-20 `Transfer` events from `PYUSD` contracts, and Solana account balances from the `token_balance_changes` data for the PYUSD mint, covering Ethereum, Arbitrum, and Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: PYUSD supply tracking on Ethereum and Arbitrum

- **Purpose**: Calculate the circulating supply of PYUSD on EVM-compatible networks
- **Logic**: `SupplyIncreased` and `SupplyDecreased` events are parsed from `PYUSD` contracts to track the primary issuance and redemption of the asset. To ensure only circulating supply is measured, ERC-20 `Transfer` events to and from designated Paxos treasury addresses are identified; transfers to these addresses are subtracted from the supply, while transfers from these addresses are added. A cumulative sum of these net changes is calculated to determine the daily outstanding supply for each chain.
- **Key fields**: `amount`, `token_address`, `in_to`, `in_from`

### Component B: PYUSD supply tracking on Solana

- **Purpose**: Calculate the circulating supply of PYUSD on the Solana network
- **Logic**: Solana account balances are extracted from the `token_balance_changes` data for the PYUSD mint. These individual account-level balances are aggregated to determine the total outstanding supply on the network for each day.
- **Key fields**: `post_balance`, `mint`, `token_account`

### Component C: USD conversion and final aggregation

- **Purpose**: Normalize supply values and convert the total outstanding supply to USD
- **Logic**: Raw token amounts from all chains are normalized by decimal precision using asset metadata. These normalized values are multiplied by end-of-day price feeds for PYUSD to determine the total market value in USD. A forward-fill strategy is applied to ensure data continuity across all supported chains, and values are aggregated using daily UTC boundaries.
- **Key fields**: `outstanding_supply`, `price_usd`, `decimals`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Total value locked

Stablecoins

Users deposit funds into PayPal account and receive PYUSD at a 1:1 rate.

PayPal is a financial technology company that is the principal architect of PYUSD - full-reserve fiat stablecoin that bring US dollar liquidity on-chain.

PayPal is a public company owned by its shareholders.

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Stablecoin issuers

PayPal

PayPal USD (PYUSD) is a U.S. dollar stablecoin issued by Paxos through Paxos Trust Company, N.A.

Each token is redeemable one-for-one for U.S. dollars and is a direct claim on the issuer.

Reserves are held in bank deposits, Treasury bills, and cash, in segregated accounts within a bankruptcy-remote structure, attested monthly by KPMG LLP.

Institutions can mint and redeem directly with Paxos in USD after completing KYC, and holders have a contractual right to redeem at par.

Paxos Trust Company, N.A. is chartered as a U.S. national trust bank and is supervised by the Office of the Comptroller of the Currency (OCC).

Holder terms are governed by the law of New York in the United States.

PYUSD has been issued on public blockchains since November 2022 and is native to Ethereum, Solana, Arbitrum One, Stellar, and Polygon, with a bridged version on one more network.

PayPal USDPYUSD