New stablecoin launches are common in the crypto world. Yet, a major U.S.-based financial firm like PayPal launching a stablecoin — allowing conversion to other assets, quick transfers, and reserves-specific backing — is a unique event. Named PYUSD, PayPal’s stablecoin launched on Aug. 7, 2023. Huobi was the first cryptocurrency exchange to announce support for PYUSD, and you can now buy and swap it for other currencies on several centralized and decentralized platforms and exchanges. In this guide, we explore 7 such top crypto platforms for PYUSD.
Where to buy PYUSD: Top PYUSD platforms
PayPal
Of course, you can also buy PYUSD on the PayPal platform itself. Although PayPayl is known for its seamless integrations with numerous online platforms, it also serves as a crypto wallet. Besides PayPal USD, the platform supports Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
Other reasons include:
1. No additional fees for buying or holding PYUSD.
2. Intuitive user interface.
3. Wide acceptance across online merchants.
4. Instant transfer to and from linked bank accounts.
5. Compatibility with external crypto wallets.
- No transaction fees for PYUSD
- Buy PYUSD with all currencies
- Easy to use and navigate
- Highly secure and regulated
- Limited cryptocurrency options compared to dedicated exchanges
Since you can buy PYUSD with a linked bank account or credit card, you can buy PYUSD in every currency that is supported on PayPal.
Go to the ‘Finances’ section of the PayPal dashboard and choose the ‘Crypto’ option. Choose PYUSD and specify the amount you want to purchase. Then, Once you confirm, the PYUSD will be added to your PayPal wallet.
PayPal offers PYUSD transactions with zero additional fees, making it a cost-effective option. However, be mindful of potential conversion fees if you’re dealing with other cryptocurrencies or fiat currencies.
Venmo
Venmo, a subsidiary of PayPal, now allows users to purchase and transfer PYUSD at no cost. This feature enhances the interoperability between PayPal and Venmo, and it’s particularly beneficial for users who frequently transact between these two platforms.
Other reasons include:
1. Free transfer of PYUSD to PayPal accounts.
2. User-friendly mobile app.
3. Ability to send PYUSD to friends and family.
4. Supports transactions to external crypto wallets.
- Zero transfer fees for PYUSD
- Simplified transfers to other wallets
- Not as many cryptocurrency options as other platforms
You have the flexibility to purchase PYUSD using any currency supported by Venmo, as long as you have a linked bank account or credit card.
Purchasing PYUSD on Venmo involves selecting the ‘Crypto’ section within the app, choosing PYUSD, and specifying the purchase amount. You can use your Venmo balance or linked payment methods for the purchase. After reviewing the transaction details, confirm the purchase, and the PYUSD will be added to your Venmo account.
Venmo does not charge additional fees for buying or sending PYUSD to PayPal accounts. However, standard blockchain network fees apply for transactions to external wallets or when used as a merchant.
Coinbase
Coinbase is a completely regulated cryptocurrency exchange that contributes almost 4% of the entire PYUSD volume. This crypto platform boasts exceptional liquidity and is one of the more beginner-friendly options around.
Other reasons include:
1. Seamless KYC flow
2. Highest PYUSD volume and liquidity
3. Multiple payment methods
4. Seamless PYUSD storage
5. Ability to move PYUSD to an external wallet
Only PYSD/USD
To buy PYUSD on Coinbase, you simply need to create an account verifying the KYC and personal details. Once you have an account, you can buy PYUSD stablecoins via PayPal, debit card, and even bank transfers. You can hold PYUSD in Coinbase’s web3 wallet or on the exchange itself.
For card-based USD purchases, Coinbase charges a flat fee of up to 3.99%. Bank transfers and digital wallets attract 1.49%, whereas currency conversion rates are set at 2.49%, in case you want to convert your fiat holdings to USD to buy PYUSD. Stablecoin trading fee, especially for arbitrage traders, can be as low as 0.001%.
Kraken
Kraken makes an impression if you want a crypto platform with the most robust security standards. Plus, it is beginner-friendly and offers prompt customer support. Kraken even adheres to stringent regulatory standards and boasts diverse trading options.
Other reasons include:
Direct customer support
Mention of minimum order size
Supports instant PYUSD buying due to high liquidity
- Highly secure
- Competitve trading fees
- Regulated
- Offers two PYUSD pairs
- Limited and pricey fiat deposit options
PYUSD/USD and PYUSD/EUR
On Kraken, you can buy PYUSD using standard cryptocurrency deposits and swaps. As of now, you need to sign up first on the Kraken Pro. Or you can rely on credit/debit cards, wire, and bank transfers to get yourself some PYUSD stablecoins.
The fee charged for trading stablecoins can go as high as 0.2% if there is minimal to no 30-day trading activity. The same can go as low as 0.1% for high trading volumes. Also, for card-based PYUSD purchases, Kraken charges 3.75% and 25 cents to execute orders. Additionally, there is also a 3.75% charge for depositing fiat currencies — USD.
KuCoin
Not just PYUSD, but KuCoin is one of the few cryptocurrency exchanges to list a diverse selection of tokens. As a global hybrid exchange, it offers access to derivatives, Web3 resources, and even institutional offerings.
Other reasons include:
1. Focus on bringing additional PYUSD use cases to the fore
2. Easy to locate on the spot market
3. PayPal integration
- The widest possible selection of cryptocurrencies
- Low trading fees
- Regional regulatory concerns
- High USDT buying fees, when initiated via third-party services
Only PYUSD/USDT
As only the PYUSD/USDT pair is available on KuCoin, the best way to buy PYUSD is to first purchase USDT using PayPal, wire transfers, credit cards, and other options. Or, you can convert any of your crypto holdings to USDT. Once you have USDT at your disposal, you can head over to the trading interface and buy PYUSD.
KuCoin doesn’t charge any fee if you wish to buy USDT using Visa/Mastercard debit and credit cards. However, for bank transfers and payments made via Apple Pay via third-party channels like Banxa and Simplex, a charge of almost 0.5% is levied! Trading fees are restricted to 0.1%, making KuCoin one of the more affordable crypto platforms around.
Zengo
Not all PYUSD platforms need to be crypto exchanges, and Zengo proves that with its ease of usage, wallet-like security, a beginner-friendly interface. Unlike a crypto exchange where you need to verify credentials, Zengo lets you get started right away.
Other reasons include:
1. Swap support
2. Free PYUSD deposits
- Allows you to seamlessly receive PYUSD from other exchanges and wallets
- Highest level of security
- Seamless account recovery support
- Higher fees
- Limited to the mobile devices
No pairs, but you can swap several cryptocurrencies like BAT, BLUR, and even the ones with high market shares like BTC, ETH, and more for PYUSD.
You cannot exactly buy PYUSD on Zengo. However, it still acts as one of the top PYUSD platforms, as you can swap any crypto or stablecoin to get your share of PYUSD tokens. To get started, you can buy BTC, USDT, or any other crypto of choice using credit cards, Apple Pay, or Bank transfer. After that, you can swap this for PYUSD.
In case you want to swap PYUSD with any other stablecoin, the swap fee can go as high as .9% in some cases. Plus, you also need to account for wire transfer fees of up to 2.9%, third-party payment fees of up to 2.29%, and credit/debit card-based purchase fee limit of up to 3.75%
Crypto.com
Crypto.com paired with Paxos and PayPal, establishing itself as one of the preferred PYUSD platforms. Apart from that, the exchange itself offers a wide range of crypto-specific services like an NFT marketplace, DeFi wallet, and more.
Other reasons to consider
1. Offers trading fee discounts to CRO, native token holders
2. User-friendly interface
3. Basic KYC flow
4. Significant transaction limits
5. Competitive fee structure
6. PYUSD spends via cards are allowed
- Fee discounts
- Free fiat-deposits
- PYUSD conversion to popular cryptocurrencies is supported
- Prone to regional restrictions
PYUSD/USD and PYUSD/USDT. Inverse pairs for swapping PYUSD with others are also available. These include BTC/PYUSD, CRO/PYUSD, ETH/PYUSD, and XRP/PYUSD.
Once you verify the credentials and details, you can either buy USDT first or directly purchase PYUSD using fiat. You can use credit/debit cards, bank transfers, crypto deposits, or the Crypto.com pay option to make purchases.
The standard trading fees start at 0.0750%, which can be lowered to zero with high 30-day trading activity and/or CRO holdings. In case you want to purchase PYUSD directly using fiat, it is worth noting that fiat deposits are free on Crypto.com.
Besides the mentioned PYUSD platforms, you can purchase this stablecoin from a host of other PYUSD trading platforms like Gate.io, Bitstamp, and more. If you would prefer to buy PYUSD through a decentralized PYUSD platform, Uniswap and Curve also support the asset.
| Platform | Type | Percentage of volume | PYUSD trading pairs |
|---|---|---|---|
| PayPal | Money service business | N/A | You can buy PYUSD with your PP balance, bank account or debit card |
| Venmo | Money service business | N/A | You can buy PYUSD with your PP balance, bank account or debit card |
| Coinbase | Brokerage | 0.58% | 1 |
| Kraken | Exchange | 1.14% | 2 |
| Kucoin | Exchange | 0.61% | 1 |
| Zengo | Wallet | N/A | N/A (Supports 50+ swaps) |
| Crypto.com | Exchange | 0.14% | 2 |
What is PYUSD, and why is it a big deal?
PYUSD is an ERC-20 stablecoin issued using the Ethereum blockchain.
Launched by PayPal in an attempt to further its expansive merchant network with a crypto-focussed payment solution, PYUSD aims to bridge fiat and blockchain-powered currencies. The plan is to integrate cryptocurrency as a daily transaction tool. It makes sense as PayPal’s stablecoin exhibits several use cases, including transfers, payments, and more — blurring the lines between crypto and fiat.
Did you know?PayPal has ensured that PYUSD remains an open and programmable stablecoin, making it a worthy payment option for web3 initiatives involving NFT marketplaces, DApps, wallets, and more.
PYUSD is a fiat-backed stablecoin with actual assets like U.S. Treasury bonds, cash equivalents, and dollar deposits backing the issuance. The issuance of PYUSD is handled by Paxos Trust Company — a firm that works under the purview of the New York State Department of Financial Services.
PYUSD is designed to maintain a peg to $1 USD. However, as with all stablecoins, PYUSD will trade at slightly different price levels on different PYUSD exchanges as the supply-demand curve settles. Most traders will find the price deviation from $1 hardly noticeable unless they are specifically seeking arbitrage opportunities.
Now that we know a bit about this new kid on the block, let us look at the exchanges where you can buy PYUSD.
What to look for in a PYUSD platform
Now that we have explained what PYUSD is and some of the top PYUSD platforms, it is time to revisit the parameters you need to check before zeroing in on one.
1. KYC/AML and regulatory considerations
Our choice: Coinbase
Why is Coinbase best? The fully regulated platform has tagged PYUSD as an experimental asset, indicating caution.
Storage options
Our choice: Coinbase
Why is Coinbase best? You can either store PYUSD in Coinbase’s web3 wallet or keep the same on the exchange. PYUSD withdrawals to external wallets are also supported.
Experience and additional benefits
Our choice: Crypto.com
Why is Crypto.com best? Official exchange recognized by PayPal and Paxos with support for PYUSD-based interest earning, support for PYUSD spending, and more.
Liquidity and volume
Our choice: Coinbase
Why is Coinbase best? Comprises a higher chunk of PYUSD trading volume with a high liquidity score.
Fees
Our choice: Crypto.com
Why is Crypto.com best? The trading fee is set at 0.075%, and fiat deposits are free.
PYUSD use-cases
Now that we know about the exchanges and platforms that allow you to buy PYUSD, let us go through the stablecoin’s use cases. These include the following:
- Direct PayPal transactions
- Web3 integration courtesy of the programmable nature
- Support for making international cross-border payments
- As a mode of peer-to-peer payment
- Funding purchases made via PayPal
- Allows traders to explore arbitrage trading opportunities across platforms
- Helps manage risks during market volatility courtesy of fiat-pegging
- Works as a fixed payment option for services and goods
- Supports crypto-to-crypto conversions, facilitating seamless asset management
PYUSD controversies
In early November 2023, PayPal revealed that it received an SEC subpoena as part of a deeper probe into PYUSD. Even though this feels like a standard SEC initiative to closely examine the impact and role of stablecoins, mainly after the meltdown of TerraUSD — an algorithmic stablecoin — the investigation has opened new avenues for discussion. The United States House of Financial Services Committee is back to the drawing board in regards to regulating stablecoins.
Note: While the U.S. is becoming more stringent regarding stablecoins, regions like the European Union and Hong Kong are developing active frameworks to support the growth of this asset class.
Should you buy PYUSD?
As of mid-November 2023, the crypto market is surging. BTC is closing in on $37,000, and ETH is flirting with the $2,000 mark. Altcoins like MATIC, SOL, and more are showing bullish signals. Amid the euphoria, willingness to buy PYUSD can be attributed to the need to use stablecoin on PayPal or for cross-border payments. Also, if you are an arbitrage trader, the price differences across PYUSD platforms are a reason good enough to buy. While the stablecoin has admittedly had a slow start since its launch, there may be a bright future ahead. The move by a global payments processor and household name to launch stablecoin signifies a watershed moment for both TradFi and crypto and may entice many more people into the web3 fold.
Frequently asked questions
PYUSD is a fiat-backed stablecoin. It is the native stablecoin to the PayPal platform, a money transmitting service. Although it is used on PayPal, it is issued by Paxos.
The safety of PYUSD depends on a few factors. PYUSD is backed by U.S. treasuries and U.S. Treasury repurchase agreements. It is independently and regularly audited by WithumSmith+Brown, PC.
Depending on the platform you use to purchase PYUSD, the token may have fees. However, the token itself does not have fees inherent in the code. To understand any fees associated with purchasing PYUSD, you must check the platform that you are trading on.
The cheapest way to buy PYUSD is on PayPal or Venmo. PayPal and Venmo have no fees on purchasing, and currencies can be sent out of the wallet to any self-custody wallet or exchange.
You can choose any of the top crypto exchanges for PYUSD to get the PayPal stablecoin or any other variant like tether, USDC, or more. However, Coinbase and Kraken still remain the best platforms for PayPal stablecoin and other assets, courtesy of the high volume and liquidity.
If you are unsure about where to buy PYUSD in the United States, there is no need to look beyond Coinbase. Coinbase offers a seamless KYC process, offers multiple PYUSD stablecoin storage options, and, most importantly, adheres to region-specific regulations.
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