Javier Hernandez Paxos, the entity responsible for issuing PYUSD and partnering with payment giant Paypal, has recently disclosed a comprehensive transparency report that outlines the financial backing for the PYUSD stablecoin. The report confirms that PYUSD is completely backed by cash reserves and U.S. Treasury securities.
As of the financial snapshot taken on August 31, 2023, the reserve backing PYUSD stands at $45.36 million, while the stablecoin’s notional value hovers around $44.50 million. The repurchase agreements Paxos engages in feature “overnight maturities with esteemed financial entities and overcollateralization through U.S. Treasury bonds,” as elaborated in the report.
The breakdown in the report illustrates that $43.86 million of the total reserve is underpinned by U.S. Treasury bonds, while the remaining $1.5 million is backed by cash reserves. Paxos provides assurance in its transparency document, stating, “Given the overcollateralized nature of all trading activities, the likelihood of financial loss is not considered significant.”
In addition, Paxos disclosed its ongoing affiliations with several banking institutions, namely BMO Harris Bank, Customers Bank, and State Street Bank. The company makes it known that, “To cater for liquidity during nights and weekends, Paxos sustains balances exceeding FDIC insurance thresholds.”
As of September 14, 2023, at precisely 9:00 a.m. Eastern Time, there are approximately 44,376,440.45 PYUSD tokens in active circulation. A total of 611 unique addresses hold PYUSD tokens, and since its inception in August, the stablecoin has undergone a total of 2,758 transfers. According to current data, the top 100 PYUSD holders cumulatively control 99.97% of the entire circulating supply.
At present, PYUSD claims the 411th position out of more than 10,000 cryptocurrency assets when ranked by market capitalization. The recently launched stablecoin has seen a 24-hour global trading volume of around $1.27 million.
We invite you to share your insights and analyses on the recently published PYUSD transparency report by Paxos in the comments section below.
Table of Contents
Frequently Asked Questions (FAQs) about Transparency Report
What is PYUSD, and who issues it?
PYUSD is a stablecoin backed by cash reserves and U.S. Treasury bonds. It is issued by Paxos, a partner of Paypal, a prominent payment giant.
How much does PYUSD have in reserves?
As of August 31, 2023, PYUSD has $45.36 million in reserves, with a notional value of approximately $44.50 million. Of this, $43.86 million is collateralized by U.S. Treasury bonds, and $1.5 million is backed by cash reserves.
What measures are in place to mitigate risk?
Paxos employs overcollateralization with reputable financial institutions and U.S. Treasury bonds, ensuring that the risk of financial loss is considered minimal.
Which banks does Paxos collaborate with?
Paxos maintains collaborations with BMO Harris Bank, Customers Bank, and State Street Bank to support liquidity, even during nights and weekends.
How is PYUSD performing in terms of circulation and market ranking?
As of September 14, 2023, over 44 million PYUSD tokens are in circulation, held by 611 unique addresses. It ranks 411th among more than 10,000 cryptocurrencies by market capitalization and has seen a 24-hour global trading volume of approximately $1.27 million.
What is the distribution of PYUSD among holders?
The top 100 PYUSD holders collectively possess 99.97% of all PYUSD in circulation.
More about Transparency Report
- PYUSD Stablecoin
- Paxos Official Website
- Paypal
- U.S. Treasury
- BMO Harris Bank
- Customers Bank
- State Street Bank
- Cryptocurrency Market Capitalization
4 comments
Ranking 411th outta 10,000+ cryptos? Not too shabby for a newbie! And over a mill in trade volume? Impressive start!
Wow, PYUSD is backed by big bucks, like $45M worth! Cool to know it’s got Treasury bonds too. Big banks like BMO in on this action, interesting!
Wait, only 611 addresses hold PYUSD? That’s kinda low, innit? Top 100 hold almost all of it? Bit lopsided, no?
45 mill in the bank? Nice. Bet that keeps the risks low. Collabs with big banks for weekend liquidity, gotta be smart moves!