Paxos Releases Transparency Report on Paypal’s Stablecoin
Paxos, the issuer of the stablecoin PYUSD and a partner of Paypal, has published a transparency report regarding the reserves backing PYUSD. The report, which can be found here, reveals that PYUSD is fully collateralized by U.S. Treasury notes and cash reserves.
Reserves and Collateralization
As of August 31, 2023, PYUSD is supported by $45.36 million in reserves, with a notional value of approximately $44.50 million. Paxos ensures the safety of its repurchase agreements by engaging in overnight maturity with reputable financial institutions and overcollateralizing them with U.S. Treasuries.
Out of the total reserves, $43.86 million is collateralized by Treasury notes, while $1.5 million is backed by cash reserves. Paxos emphasizes that due to the overcollateralization of trades, the risk of loss is not considered significant.
Paxos collaborates with BMO Harris Bank, Customers Bank, and State Street Bank to support overnight and weekend liquidity. To meet these needs, Paxos maintains balances that exceed FDIC insurance limits.
Current Circulation and Market Ranking
As of September 14, 2023, at 9:00 a.m. (ET), there are approximately 44,376,440.45 PYUSD in circulation across roughly 611 addresses. Since its launch in August, PYUSD has recorded a total of 2,758 transfers. The top 100 holders collectively own 99.97% of all PYUSD in circulation.
Currently, PYUSD is ranked 411th out of over 10,000 crypto assets in terms of market capitalization. It has achieved a 24-hour global trade volume of approximately $1.27 million.
Hot Take: Paxos Ensures Transparency and Security with PYUSD
Paxos’ transparency report on Paypal’s stablecoin, PYUSD, provides insight into the collateralization and reserves supporting the token. With full backing from U.S. Treasury notes and cash reserves, Paxos aims to minimize the risk of loss through overcollateralization and partnerships with reputable financial institutions.
The report also highlights the current circulation of PYUSD, its market ranking, and trade volume. While it is still a relatively new token, ranking at 411th in market capitalization, PYUSD has shown promising activity in terms of transfers and global trade volume.
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