USDC vs PYUSD, what is the difference?

USDC vs PYUSD is a comparison of two US dollar stablecoins run by different companies. Both are tokens on public blockchains that are meant to hold a value of one dollar each, backed by reserves the issuer holds. The main differences are who issues them, how their reserves are reported, and where people tend to use them. The bigger comparison with Tether is in USDT vs USDC.

Who issues USDC and PYUSD?

USDC is issued by Circle, which also issues the euro stablecoin EURC. Circle's site describes USDC and EURC as fully backed and redeemable 1 to 1.

PYUSD is issued by Paxos Trust Company for PayPal, which brands and distributes it. PayPal describes PYUSD as redeemable 1 to 1 for US dollars. More on PayPal's coin is in what PayPal USD is.

How are USDC and PYUSD reserves reported?

Circle says USDC reserves are reported weekly. Its transparency page says Treasuries and overnight reverse repurchase agreements held for USDC holders may be held in custodial accounts, in a separately managed account, or in the Circle Reserve Fund, a money market fund managed by BlackRock. It also breaks out bank deposits, including those at systemically important institutions.

PayPal says PYUSD is fully backed by US dollar reserves and cash equivalents. Paxos self-reports the makeup of the reserve after each month ends, and an independent third-party accounting firm issues monthly attestation reports, which are posted on Paxos' PayPal USD transparency page.

So the main reporting difference is frequency and format. Circle publishes weekly reserve data on its own site, while PYUSD's main reports come monthly from Paxos.

Where can you use USDC vs PYUSD?

USDC is widely supported across exchanges, wallets and decentralized apps on many blockchains. PYUSD is built into PayPal's own app. PayPal says eligible PayPal users pay no fees to buy, sell, hold or transfer PYUSD inside PayPal, and that it can be sent to outside crypto wallets on networks including Ethereum and Solana. PayPal also offers rewards for holding PYUSD in a PayPal account, at a rate it says can change and under its own terms.

Are USDC and PYUSD the same as dollars?

No. Each is a claim on an issuer that promises redemption at one dollar, not a bank deposit, and neither carries deposit insurance on the token itself. A stablecoin can briefly trade away from one dollar under stress, as described in what happens when a stablecoin depegs.

This comparison explains how each coin is set up and does not recommend either.