Paxos has published its September 2024 transparency report on PayPal’s stablecoin PYUSD. According to the report, the stablecoin’s circulation amount decreased to $709.79 million due to market conditions. The report states that the assets of $720.15 million are backed by treasury bonds, resale agreements, and cash.
The financial status and asset distribution of PayPal’s stablecoin PYUSD, which is pegged 1:1 to the US dollar, as of August 31, 2024, are detailed in the report. The report, which emphasizes that PYUSD’s reserves are under protection, also shows a decrease in the total amount of tokens. There is currently $709.79 million worth of PYUSD in circulation, and Paxos states that this amount is fully backed by assets. It is stated that the decrease in the total amount of stablecoin in circulation compared to previous reports is associated with market conditions.
Asset Allocation and Safeguarded Reserves
The report also provides a detailed account of Paxos’ asset structure. The reserves include a total of $111.59 million worth of US Treasury bonds, with a nominal value of $110.71 million. In addition, the reserves include $585.32 million worth of US Treasury resale agreements, with a nominal position value of $573.85 million. Paxos emphasizes that these agreements are collateralized and can be converted into liquidity in the event of a default by the counterparty. In addition, the reserves include $23.22 million worth of cash, some of which is secured by the Federal Deposit Insurance Corporation (FDIC).
The market value of total assets reached $ 720.15 million, while the nominal total value was announced as $ 707.79 million. The report reveals that PayPal continues its commitment to transparency for PYUSD and that the stablecoin has a reliable reserve structure despite market conditions. The collateralization of PYUSD users' assets provides security against possible market fluctuations. On the other hand, the largest stablecoin issuer Tether's USDT is constantly on the agenda with transparency discussions. This situation can sometimes cause concerns in the stablecoin market, which is a dynamic factor for the cryptocurrency market.
