PayPal (PYUSD) is a stablecoin designed for payments and issued by the Paxos Trust Company. The New York State Department of Financial Services regulates the Paxos Trust Company. Hence, a government agency will regulate the PYUSD. They will back the PYUSD with a combination of US Treasury Debt and Repurchase Agreements, cash held in bank accounts, and other cash equivalents. PayPal claims this means US Dollars back every PYUSD.