Can PYUSD be frozen or blacklisted?
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Yes. Like other regulated stablecoins, PYUSD includes freeze & seize functions governed by Paxos. Addresses linked to sanctions or fraud can be restricted. The smart contract uses role-based access control, allowing Paxos to:Freeze transfers
Wipe balances under legal order
Update contract logic through controlled upgrades
This aligns with NYDFS mandates and places PYUSD in the “compliance-first stablecoin” category. -
Most regulated stablecoins have freeze functions. PYUSD is no exception. đź§Š
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Blacklist controls always raise trust concerns, even if they’re necessary.
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This aligns with NYDFS mandates and places PYUSD in the “compliance-first stablecoin” category.