As security professional I'm going to focus on the security part of the stable coin.
PayPal USD (PYUSD) is partially ERC20 conforming token on Ethereum mainnet implemented as upgradeable contract. This means any issues can be fixed by deploying new implementation contract, but also means new issues can be introduced.
As of the current implementation contract, trading of PYUSD can be suspended, token owner can mint new tokens and can alter balances of existing token holders.
Limiting trading of the token is usually a bad idea, as it can restrict where users can convert the token as other tokens or cash out as FIAT currencies. However it's very common for stablecoins to have some mechanism to avoid the exchange rate to drift too far from the currency it is pegged against.
Minting new tokens can be used to manipulate exchange rate of the currency as the total number of tokens must be backed up with equivalent amount of cash or cash-equivalent assets, which can be easily converted to cash.
Altering user balances can be used to bridge two cryptocurrencies, but it can also be used to recover funds stolen by malicious users. However, if the private keys for the owner address are compromised, any malicious person can alter balances of other users and transfer balance to wallet address owned by oneself.