PYUSD

PYUSD employs multiple security layers: Ethereum contracts use OpenZeppelin's audited ERC-20 implementation with additional compliance safeguards. Solana deployments leverage Token Extensions' built-in security features. Both contracts undergo regular third-party audits by firms including Halborn and OpenZeppelin. The smart contracts include pause functionality for emergency response, and PayPal maintains a bug bounty program for white-hat hackers. Reserve assets are held in bankruptcy-remote structures with Paxos, providing additional asset protection.

Unlike traditional PayPal transactions, PYUSD transactions settle on-chain in under a minute with significantly lower fees. While PayPal's fiat system relies on centralized databases and banking networks, PYUSD leverages blockchain technology for transparent, immutable transaction records. The stablecoin enables programmable payments through smart contracts and provides direct user custody of assets through self-hosted wallets. Cross-border PYUSD transactions bypass correspondent banking networks, reducing settlement times from days to seconds.

During peak usage, PYUSD leverages Solana's 65,000 TPS capacity for high-throughput transactions while maintaining Ethereum for security-sensitive operations. The LayerZero integration dynamically routes transactions between chains based on network congestion. PayPal's off-chain infrastructure provides backup processing for wallet-to-wallet transfers within its ecosystem. Recent stress tests handled 2,500 TPS during hackathon events with average fees remaining under $0.003.

Currently, PYUSD requires internet connectivity for blockchain transactions. However, PayPal is exploring offline solutions including NFC-based transfers and SMS payment systems for emerging markets. The Solana implementation supports future integration with Helium's decentralized wireless network for broader coverage. For limited-connectivity scenarios, PayPal's app supports pre-signed transactions that broadcast automatically when connectivity resumes, enabling delayed settlement without user intervention.