diff --git a/nest/script/DeployNestContracts.s.sol b/nest/script/DeployNestContracts.s.sol
index c3a4009..2159664 100644
--- a/nest/script/DeployNestContracts.s.sol
+++ b/nest/script/DeployNestContracts.s.sol
@@ -13,6 +13,7 @@ import { NestStaking } from "../src/NestStaking.sol";
 import { IComponentToken } from "../src/interfaces/IComponentToken.sol";
 import { AggregateTokenProxy } from "../src/proxy/AggregateTokenProxy.sol";
 import { NestStakingProxy } from "../src/proxy/NestStakingProxy.sol";
+import { pUSD } from "../src/token/pUSD.sol";
 
 // Concrete implementation of ComponentToken
 contract ConcreteComponentToken is ComponentToken {
@@ -35,15 +36,17 @@ contract ConcreteComponentToken is ComponentToken {
 contract DeployNestContracts is Script, Test {
 
     address private constant NEST_ADMIN_ADDRESS = 0xb015762405De8fD24d29A6e0799c12e0Ea81c1Ff;
-    address private constant PUSD_ADDRESS = 0xe644F07B1316f28a7F134998e021eA9f7135F351;
-    address private constant USDT_ADDRESS = 0x2413b8C79Ce60045882559f63d308aE3DFE0903d;
 
     function test() public { }
 
     function run() external {
         vm.startBroadcast(NEST_ADMIN_ADDRESS);
 
-        IComponentToken USDT = IComponentToken(USDT_ADDRESS);
+        // Deploy pUSD
+        pUSD pUSDToken = new pUSD();
+        ERC1967Proxy pUSDProxy =
+            new ERC1967Proxy(address(pUSDToken), abi.encodeCall(pUSD.initialize, (NEST_ADMIN_ADDRESS)));
+        console2.log("pUSDProxy deployed to:", address(pUSDProxy));
 
         // Deploy ConcreteComponentToken
         ConcreteComponentToken componentToken = new ConcreteComponentToken();
@@ -55,7 +58,7 @@ contract DeployNestContracts is Script, Test {
                     NEST_ADMIN_ADDRESS, // owner
                     "Banana", // name
                     "BAN", // symbol
-                    IERC20(USDT_ADDRESS), // asset token
+                    IERC20(address(pUSDProxy)), // asset token
                     false, // async deposit
                     false // async redeem
                 )
@@ -73,7 +76,7 @@ contract DeployNestContracts is Script, Test {
                     NEST_ADMIN_ADDRESS,
                     "Apple",
                     "AAPL",
-                    IComponentToken(PUSD_ADDRESS),
+                    IComponentToken(address(pUSDProxy)),
                     1e17, // ask price
                     1e17 // bid price
                 )
@@ -82,7 +85,7 @@ contract DeployNestContracts is Script, Test {
         console2.log("AggregateTokenProxy deployed to:", address(aggregateTokenProxy));
 
         // Add new component tokens
-        AggregateToken(address(aggregateTokenProxy)).addComponentToken(USDT);
+        AggregateToken(address(aggregateTokenProxy)).addComponentToken(IComponentToken(address(pUSDProxy)));
         AggregateToken(address(aggregateTokenProxy)).addComponentToken(IComponentToken(address(componentTokenProxy)));
 
         // Deploy NestStaking
diff --git a/nest/src/token/pUSD.sol b/nest/src/token/pUSD.sol
new file mode 100644
index 0000000..f1c693f
--- /dev/null
+++ b/nest/src/token/pUSD.sol
@@ -0,0 +1,137 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.25;
+
+import { AccessControlUpgradeable } from "@openzeppelin/contracts-upgradeable/access/AccessControlUpgradeable.sol";
+import { Initializable } from "@openzeppelin/contracts-upgradeable/proxy/utils/Initializable.sol";
+import { UUPSUpgradeable } from "@openzeppelin/contracts-upgradeable/proxy/utils/UUPSUpgradeable.sol";
+import { ERC20Upgradeable } from "@openzeppelin/contracts-upgradeable/token/ERC20/ERC20Upgradeable.sol";
+
+import { SafeTransferLib } from "@solmate/utils/SafeTransferLib.sol";
+
+interface IVault {
+
+    function enter(address from, address asset, uint256 assetAmount, address to, uint256 shareAmount) external;
+    function exit(address to, address asset, uint256 assetAmount, address from, uint256 shareAmount) external;
+    function transferFrom(address from, address to, uint256 amount) external returns (bool);
+    function approve(address spender, uint256 amount) external returns (bool);
+
+}
+
+/**
+ * @title pUSD
+ * @author Eugene Y. Q. Shen, Alp Guneysel
+ * @notice Unified Plume USD stablecoin
+ */
+contract PUSD is Initializable, ERC20Upgradeable, AccessControlUpgradeable, UUPSUpgradeable {
+
+    using SafeTransferLib for ERC20;
+
+    // ========== ROLES ==========
+    bytes32 public constant UPGRADER_ROLE = keccak256("UPGRADER_ROLE");
+    bytes32 public constant MINTER_ROLE = keccak256("MINTER_ROLE");
+    bytes32 public constant BURNER_ROLE = keccak256("BURNER_ROLE");
+    bytes32 public constant VAULT_ADMIN_ROLE = keccak256("VAULT_ADMIN_ROLE");
+    bytes32 public constant PAUSER_ROLE = keccak256("PAUSER_ROLE");
+
+    // ========== STATE VARIABLES ==========
+    IVault public vault;
+    bool public paused;
+
+    // ========== EVENTS ==========
+    event VaultChanged(address oldVault, address newVault);
+    event Paused(address account);
+    event Unpaused(address account);
+
+    // ========== MODIFIERS ==========
+    modifier whenNotPaused() {
+        require(!paused, "PUSD: paused");
+        _;
+    }
+
+    // ========== CONSTRUCTOR & INITIALIZER ==========
+    /// @custom:oz-upgrades-unsafe-allow constructor
+    constructor() {
+        _disableInitializers();
+    }
+
+    function initialize(address _vault, address admin) external initializer {
+        __ERC20_init("", ""); // Empty strings since we override name() and symbol()
+        __AccessControl_init();
+        __UUPSUpgradeable_init();
+
+        vault = IVault(_vault);
+
+        _grantRole(DEFAULT_ADMIN_ROLE, admin);
+        _grantRole(UPGRADER_ROLE, admin);
+        _grantRole(MINTER_ROLE, admin);
+        _grantRole(BURNER_ROLE, admin);
+        _grantRole(VAULT_ADMIN_ROLE, admin);
+        _grantRole(PAUSER_ROLE, admin);
+    }
+
+    // ========== METADATA OVERRIDES ==========
+    function decimals() public pure override returns (uint8) {
+        return 6;
+    }
+
+    function name() public pure override returns (string memory) {
+        return "Plume USD";
+    }
+
+    function symbol() public pure override returns (string memory) {
+        return "pUSD";
+    }
+
+    // ========== ADMIN FUNCTIONS ==========
+    function setVault(
+        address newVault
+    ) external onlyRole(VAULT_ADMIN_ROLE) {
+        address oldVault = address(vault);
+        vault = IVault(newVault);
+        emit VaultChanged(oldVault, newVault);
+    }
+
+    function pause() external onlyRole(PAUSER_ROLE) {
+        paused = true;
+        emit Paused(msg.sender);
+    }
+
+    function unpause() external onlyRole(PAUSER_ROLE) {
+        paused = false;
+        emit Unpaused(msg.sender);
+    }
+
+    // Required override for UUPSUpgradeable
+    function _authorizeUpgrade(
+        address newImplementation
+    ) internal override onlyRole(UPGRADER_ROLE) { }
+
+    // ========== ERC20 OVERRIDES ==========
+    function transfer(address to, uint256 amount) public override whenNotPaused returns (bool) {
+        return vault.transferFrom(msg.sender, to, amount);
+    }
+
+    function transferFrom(address from, address to, uint256 amount) public override whenNotPaused returns (bool) {
+        return vault.transferFrom(from, to, amount);
+    }
+
+    function approve(address spender, uint256 amount) public override whenNotPaused returns (bool) {
+        bool success = super.approve(spender, amount);
+        vault.approve(spender, amount);
+        return success;
+    }
+
+    function balanceOf(
+        address account
+    ) public view override returns (uint256) {
+        return vault.balanceOf(account);
+    }
+
+    // ========== INTERFACE SUPPORT ==========
+    function supportsInterface(
+        bytes4 interfaceId
+    ) public view override(AccessControlUpgradeable) returns (bool) {
+        return super.supportsInterface(interfaceId);
+    }
+
+}