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For every token in circulation Paxos holds, for holders, one US dollar or an equal amount of permitted US-dollar assets in segregated accounts.

“For every USD Stablecoin issued by us and remaining in circulation, Paxos will hold on behalf of Customer Token Holders and Non-Customer Token Holders either one U.S. Dollar or an equivalent amount of permitted USD-denominated assets in segregated accounts.”

Paxos states that customer assets are held in segregated, bankruptcy-remote accounts and would not be used to pay Paxos' debts if it became insolvent.

“In the event of Paxos’ insolvency, customer assets would not be used to satisfy the debts of Paxos because client assets are held in segregated, bankruptcy remote accounts.”

Stablecoins issued by Paxos Trust were approved for its customers through a specific approval from the US OCC.

“USD Stablecoins issued by Paxos Trust were approved for customers of Paxos Trust through specific approval from the OCC.”

For Paxos Trust customers, Paxos' General Terms are governed by New York law, with disputes going to arbitration in New York.

“The language of the arbitration shall be English and the Agreement shall be governed by the laws of the State of New York.”

All redemptions are one-for-one, whatever the market value of the reserve assets.

“ALL REDEMPTIONS WILL BE ON A ONE-FOR-ONE BASIS, NOTWITHSTANDING ANY CHANGE IN THE MARKET VALUE OF THE RESERVE ASSETS BACKING USD STABLECOINS.”

Only Paxos customers can buy PYUSD from Paxos or redeem it with Paxos.

“Only Customers may purchase USD Stablecoins from us or redeem USD Stablecoins from us.”

Paxos charges a fee on the reserves at a market rate, but never one that would take reserves below the tokens outstanding.

“We will apply a fee to reserves backing USD Stablecoins, and you agree to pay us such fee as determined by an appropriate market rate, provided that no fee will be imposed that reduces the USD Stablecoin reserves to below the amount of USD Stablecoins outstanding.”

Paxos may refuse to issue or redeem for a verified customer whose Paxos account is suspended or terminated.

“We may also refuse to issue USD Stablecoins to, or redeem USD Stablecoins from, a verified Customer in the event of any of the suspension and/or termination of your account with Paxos”

Dollars paid for the stablecoins are kept in custodian banks or used to buy debt instruments, keeping one dollar or its face value per token.

“The US dollars used to purchase USD Stablecoins are deposited in custodian banks or used to purchase Debt Instruments to maintain a one-to-one ratio of each USD Stablecoin to the amount of US dollar deposits or the face amount of Debt Instruments.”

Cash reserve accounts are held in Paxos' name and control, separate from its operating accounts, specifically for token holders.

“Each fiat cash depository account is (i) custodied by Paxos Trust, Paxos Digital or PIE in our name and under our control, (ii) separate from our business and operating bank accounts, and (iii) established specifically for the benefit of Customer Token Holders and Non-Customer Token Holders.”

Paxos states that it publishes reserve reports and attestations for PYUSD monthly.

“The Paxos-issued reserve reports and attestations for PayPal USD published monthly.”

Paxos may suspend minting for any reason it considers necessary or appropriate.

“Paxos also reserves the right to suspend minting USD Stablecoins for any reason it deems necessary or appropriate.”

Paxos may change its fee structure or raise fees at any time.

“We reserve the right to change or modify our fee structure or increase any of our fees at any time and from time to time.”