PYUSD vs USDY
PayPal USD and Ondo US Dollar Yield, compared on the things that decide whether you get your dollar back. Live data, updated continuously.
30-day peg gap and PYUSD/USDY spread
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Issued by NYDFS-regulated Paxos on behalf of PayPal. Reserves are US Treasuries, reverse repo and cash, held in bankruptcy-remote accounts with monthly attestations.
Verdict band: Strong
A yield-bearing note backed by short-term US Treasuries and bank deposits, tokenised for non-US holders.
Verdict band: Strong
| Safety scoreComposite of collateral, peg, liquidity, issuer and track record. | ●●●●●5 of 5 | 93 | 88 | PYUSD |
|---|---|---|---|---|
| Collateral qualityWhat actually backs the token, and how liquid that backing is. | ●●●●●5 of 5 | 95 | 95 | Tie |
| Exit liquidityWhether you can leave at size without moving the price. | ●●●●●5 of 5 | $486.09M | $2.21B | USDY |
| Issuer & legal standingRegulatory perimeter, disclosure quality and redemption rights. | ●●●●4 of 5 | 100 | 54 | PYUSD |
| Peg tightness (live)Absolute distance from $1.00 right now — smaller is better. | ●●●●4 of 5 | −0.016% | 0.000% | USDY |
| Worst recorded depegHow badly the token has broken before, as a stress precedent. | ●●●●4 of 5 | None recorded | None recorded | Tie |
| Track recordYears live and behaviour through past stress events. | ●●●●4 of 5 | 69 | 69 | Tie |
| Scale / market capBigger float usually means broader venue support and tighter spreads. | ●●●3 of 5 | $2.85B | $2.20B | PYUSD |
| Chain reachNumber of networks where the token is natively deployed. | ●●●3 of 5 | 7 chains | 12 chains | USDY |
| Best available yieldUpside — but every extra point above T-bills is paid for with risk. | ●●2 of 5 | 10.77% | 4.11% | PYUSD |
"Matters" is our weighting of how much each dimension typically drives a real allocation decision. Sort any column to re-rank the tradeoffs by what matters to you.
The short answer
PYUSD scores higher on safety (93 vs 88), driven mainly by collateral quality and disclosure. USDY has deeper tracked liquidity ($2.21B), which is what determines whether you can exit at size. PYUSD currently earns up to 10.77% — remember that any rate above the T-bill yield is payment for a risk.
If both are fiat-reserve tokens, note that holding both is not diversification: they share the same short-dated Treasury and banking exposure. Genuine diversification means mixing collateral structures.
Which one fits your goal: PYUSD or USDY?
Capital preservation over everything else.
For park cash safely, PYUSD edges out USDY — but it is close enough that either works.
- Safety score 93 vs 88, with collateral rated 95/100.
- Current peg deviation -0.016% against 0.000% for USDY.
- No material depeg recorded for PYUSD in our incident log.
Concentrating in one issuer is a single point of failure regardless of score. Split across collateral structures.
Key risks, side by side
PYUSD
- Issuer and banking risk: reserves sit with Paxos (for PayPal) under United States (NYDFS) rules.
- No depeg recorded in our incident log — absence of history is not a guarantee.
- Attestation cadence: monthly.
- Yield venue risk: 10.77% is earned outside the token itself.
USDY
- Issuer and banking risk: reserves sit with Ondo Finance under BVI rules.
- No depeg recorded in our incident log — absence of history is not a guarantee.
- Attestation cadence: monthly.
- Yield venue risk: 4.11% is earned outside the token itself.
| Metric | PYUSD | USDY |
|---|---|---|
| Category | Stablecoin | Tokenized Treasury |
| Issuer | Paxos (for PayPal) | Ondo Finance |
| Jurisdiction | United States (NYDFS) | BVI |
| Collateral | treasuries | treasuries |
| Peg mechanism | fiat-backed | fiat-backed |
| Attestation | monthly | monthly |
| Redemption | direct | gated |
| Price | $0.9998 | $1.1478 |
| Peg deviation | −0.016% | 0.000% |
| Market cap | $2.85B | $2.20B |
| 7d supply change | +5.51% | 0.00% |
| Liquidity | $486.09M | $2.21B |
| Best yield | 10.77% (sentora-curator · Ethereum) | 4.11% (navi-lending · Sui) |
| Chains | 7 | 12 |
| Launched | 2023 | 2023 |
| Worst recorded depeg | None recorded | None recorded |
Spread, peg gap and switching cost
- Price spread (PYUSD vs USDY)
- -1289.2 bps
- $0.9998 vs $1.1478
- Peg deviation gap
- 0.016 pp
- PYUSD −0.016% · USDY 0.000%
- Yield spread
- +6.66%
- PYUSD 10.77% · USDY 4.11%
- Liquidity ratio
- 0.22×
- $486.09M vs $2.21B
A round trip between PYUSD and USDY costs roughly the market spread plus venue fees. At 1289.2 bps of price gap, swapping $1M implies about $128.9K of price impact before fees — usually only worth it if the peg gap or yield spread is durable, not intraday noise.
Historical context
Track record is the part of a stablecoin you cannot model — it has to be observed. Here is how PYUSD and USDY have actually behaved since launch, including every stress event we have on record.
- PYUSD
PayPal USD goes live.
- USDY
Ondo US Dollar Yield goes live.
Chain coverage
PYUSD is live on 7 chains, USDY on 12. 4 chains carry both, so bridging is only unavoidable for the 11 networks where just one of them is deployed.
| Chain | PYUSD | USDY | Both available |
|---|---|---|---|
| $1.66B | $1.21B | Yes | |
| $742.76M | $179.60M | Yes | |
| — | $536.61M | USDY only | |
| $364.38M | $3.13M | Yes | |
| $2.36M | $259.20M | Yes | |
| $69.08M | — | PYUSD only | |
| — | $14.34M | USDY only | |
| $10.38M | — | PYUSD only | |
| — | $2.12M | USDY only | |
| — | $801.0K | USDY only | |
| — | $367.2K | USDY only | |
| $130.7K | — | PYUSD only | |
| — | $33.8K | USDY only | |
| — | $18.5K | USDY only | |
| — | $18.4K | USDY only |
PYUSD vs USDY: frequently asked questions
Is PYUSD or USDY safer?
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On our composite safety score PYUSD rates 93/100 versus 88/100 for USDY. The score weighs collateral quality (treasuries vs treasuries), redemption rights, attestation quality, peg history and liquidity depth. A higher score is not a guarantee: both remain issuer-credit and smart-contract exposures, not insured bank deposits.
What is the difference between PYUSD and USDY?
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PayPal USD is issued by Paxos (for PayPal) (United States (NYDFS)), backed by treasuries, with redemption terms: direct. Ondo US Dollar Yield is issued by Ondo Finance (BVI), backed by treasuries, with redemption terms: gated. Attestation coverage is "monthly" for PYUSD and "monthly" for USDY.
Which has the bigger market cap, PYUSD or USDY?
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PYUSD is larger at $2.85B in circulating supply, against $2.20B for the other. Over the last 7 days supply moved +5.51% for PYUSD and 0.00% for USDY.
Are PYUSD and USDY trading at $1.00 right now?
+
PYUSD trades at $0.9998 (−0.016% off peg) and USDY at $1.1478 (0.000% off peg). The gap between the two is about 1289.2 basis points, which is the cost you pay when rotating size between them before fees.
Has PYUSD or USDY ever depegged?
+
PYUSD: no material depeg recorded in our incident set. USDY: no material depeg recorded in our incident set. Past peg behaviour under stress is the single best available proxy for how a token trades in the next crisis.
Which is better for large institutional size, PYUSD or USDY?
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For block size the constraint is exit liquidity and primary redemption, not headline supply. USDY shows deeper on-chain liquidity at $2.21B versus $486.09M. Combine that with the redemption channel — PYUSD: direct; USDY: gated — and size trades against the primary window rather than the order book where possible.
Can I earn yield on PYUSD or USDY?
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PYUSD currently shows the higher rate at 10.77% via sentora-curator · Ethereum, against 4.11% via navi-lending · Sui for USDY. Neither token pays interest by holding it in a wallet: the yield comes from lending, liquidity provision or a wrapped yield-bearing version, each with its own counterparty and contract risk.
Which chains support both PYUSD and USDY?
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Both are deployed on 4 shared networks, including Ethereum, Solana, Arbitrum, Sei. PYUSD spans 7 chains in total and USDY spans 12. Bridged supply on a chain is not the same as natively issued supply, and it usually carries the bridge's risk rather than the issuer's.
What does it cost to switch from PYUSD to USDY?
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Budget three components: the current price spread of roughly 1289.2 bps, swap or venue fees, and slippage against available depth ($486.09M for PYUSD, $2.21B for USDY). For meaningful size, redeeming with the issuer and minting the other side is often cheaper than a secondary-market swap.
Is PYUSD or USDY regulated?
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PYUSD is issued from United States (NYDFS) with monthly; USDY is issued from BVI with monthly. Regulatory status varies by your own jurisdiction and by whether the token is offered under a specific stablecoin regime, so treat this as a starting point for diligence, not legal advice.