For the 38 days since its inception, Paypal’s stablecoin, PYUSD, has been in operation. Paxos, the issuer of PYUSD and a collaborator with payment giant Paypal has shared a transparency report detailing the stablecoin’s reserves. Similar to many leading stablecoins today, PYUSD is backed by cash reserves and U.S. Treasury reverse repurchase agreements.
The disclosed report confirms that PYUSD is fully backed by cash reserves and U.S. Treasury notes. As the data stands on August 31, 2023, the reserves backing PYUSD amount to $45.36 million, while the stablecoin’s notional value hovers around $44.50 million. Paxos’ approach to repurchasing agreements involves “overnight maturity with esteemed financial institutions and over-collateralization using U.S. Treasuries,” as detailed in the report.
Diving into the specifics, $43.86 million of the total is backed by Treasury notes, and the remaining $1.5 million is supported by cash reserves. Paxos emphasizes in the report, “Given that all trades are overcollateralized, the possibility of a loss is considered negligible.”
Further, Paxos cites its partnership with notable banks like BMO Harris Bank, Customers Bank, and State Street Bank. The company has also stated, “To ensure liquidity throughout nights and weekends, Paxos holds balances that exceed FDIC insurance caps.”
Current data, as of September 14, 2023, at 9:00 a.m. (ET), showcases that there are about 44,376,440.45 PYUSD tokens in circulation. This stablecoin is held across 611 unique addresses and has seen a total of 2,758 transfers since its August debut. An interesting observation is that the top 100 holders command a staggering 99.97% of the total PYUSD in circulation.
In the broader crypto asset ranking based on market capitalization, PYUSD holds the 411th position among over 10,000 cryptocurrencies. This nascent token has witnessed a trade volume of roughly $1.27 million in the past 24 hours.
