Paypal’s stablecoin, PYUSD, has been operational for 38 days. The token’s issuer, Paxos, has issued a transparency report related to the coin’s reserves. Much like many of today’s stablecoin industry leaders, PYUSD is supported by cash reserves and U.S. Treasury reverse repurchase agreements.
Paxos Issues Transparency Report on Paypal’s Stablecoin
Paxos, the issuer of this stablecoin and a partner of payments giant Paypal, has made public a transparency report concerning PYUSD’s reserves. According to the update, PYUSD is fully collateralized by U.S. Treasury notes and cash reserves.
As of August 31, 2023, $45.36 million supports PYUSD, which has a notional value of approximately $44.50 million. Paxos’ repurchase agreements are characterized by “overnight maturity with reputable financial institutions and overcollateralization with U.S. Treasuries,” as highlighted in the update.
The report states that out of the total, $43.86 million is collateralized by Treasury notes, and $1.5 million is collateralized with cash reserves. “As all trades are overcollateralized, the risk of loss is not deemed to be material,” Paxos assures in the transparency report.
Paxos also mentions that it collaborates with BMO Harris Bank, Customers Bank, and State Street Bank. “In order to support overnight and weekend liquidity, Paxos maintains balances in excess of FDIC insurance limits,” the company discloses.
At the time of writing on September 14, 2023, at 9:00 a.m. (ET), approximately 44,376,440.45 PYUSD is in circulation. Roughly 611 addresses hold PYUSD, and it has recorded a total of 2,758 transfers since its launch in August. As of September 14, 2023, the top 100 holders collectively possess 99.97% of all the PYUSD in circulation.
PYUSD is currently ranked 411th out of more than 10,000 crypto assets in terms of market capitalization. The newly launched token has experienced approximately $1.27 million in 24-hour global trade volume.
What do you think about the recent PYUSD transparency report Paxos released? Share your thoughts and opinions about this subject in the comments section below.