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7 Best Crypto Platforms To Buy PayPal Stablecoin (PYUSD)

12 mins
Updated by Ryan Glenn
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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

PYUSD deposit fees
Zero
Number of PYUSD pairs
You can buy PYUSD with your PP balance, bank account or debit card
PYUSD deposit fees
Zero
Number of PYUSD pairs
You can buy PYUSD with your PP balance, bank account or debit card
PYUSD deposit fee
Zero
Number of PYUSD pairs
One
Percentage of global PYUSD volume (as of Jun. 24, 2024)
0.58%
PYUSD deposit fee
Zero
Number of PYUSD trading pairs
Two
Percentage of global PYUSD volume (as of Jun. 24, 2024)
1.14%
PYUSD deposit fee
Zero

Number of PYUSD trading pairs
One
Percentage of global PYUSD volume (as of Jun. 24, 2024)
0.61%
PYUSD deposit and swap fees
Zero and up to 2% for select cryptos
Number of PYUSD pairs
N/A (Supports 50+ swaps)
Percentage of global PYUSD volume (as of Jun. 24, 2024)
N/A
PYUSD deposit fees
Zero
Number of PYUSD pairs
Two
Percentage of global PYUSD volume (as of Jun. 24, 2024)
0.14%

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.

PlatformTypePercentage of volumePYUSD trading pairs
PayPalMoney service business N/AYou can buy PYUSD with your PP balance, bank account or debit card
VenmoMoney service business N/AYou can buy PYUSD with your PP balance, bank account or debit card
CoinbaseBrokerage0.58%1
KrakenExchange1.14%2
KucoinExchange0.61%1
ZengoWalletN/AN/A (Supports 50+ swaps)
Crypto.comExchange0.14%2

What is PYUSD, and why is it a big deal?

PYUSD is an ERC-20 stablecoin issued using the Ethereum blockchain.

PYUSD and PayPal: PayPal
PYUSD and PayPal: PayPal

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 platforms and Coinbase pair: TradingView
PYUSD platforms and Coinbase pair: TradingView

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.


PYUSD platforms and Kraken pair: TradingView
PYUSD platforms and Kraken pair: TradingView

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.

PYUSD and Coinbase: Coinbase
PYUSD and Coinbase: Coinbase

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. 

PYUSD platforms and Crypto.com: Crypto.com
PYUSD platforms and Crypto.com: Crypto.com

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

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Ananda Banerjee
Ananda Banerjee is a technical copy/content writer specializing in web3, crypto, Blockchain, AI, and SaaS — in a career spanning over 12 years. After completing his M.Tech in Telecommunication engineering from RCCIIT, India, Ananda was quick to pair his technical acumen with content creation in a career that saw him contributing to Towardsdatascience, Hackernoon, Dzone, Elephant Journal, Business2Community, and more. At BIC, Ananda currently contributes long-form content discussing trading,...
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