On September 13, Paxos released its first PYUSD transparency report, which disclosed the relevant unaudited data of PYUSD as of August 31, Eastern Time, including: the total outstanding tokens (Total Tokens Outstanding) is approximately US$44.37 million; the current market value of collateral in U.S. Treasury bond collateralized reverse repurchase agreements is US$43.86 million, and the nominal position is worth US$43 million; the current market value of collateral in other cash deposits deposited in insured depository institutions is approximately US$1.5 million; the current market value of collateral in total net assets is US$45.36 million, and the nominal position is worth US$44.5 million. Paxos said that a U.S. Treasury bond reverse repurchase agreement is a contractual arrangement between two parties in which one party agrees to sell securities to the other party at a specified price and promises to buy back the securities later at another (usually higher) specified price. If the counterparty defaults, Paxos is able to liquidate U.S. Treasury bond collateral to make up for the loss. Since all transactions are overcollateralized, the risk of loss is not considered significant.
