Stablecoin

PayPal USD

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<p class="has-drop-cap">PayPal USD (PYUSD), a stablecoin <a href="https://tokenist.com/paypal-to-launch-stablecoin-backed-by-us-dollar-deposits-and-t-bills/" rel="dofollow" class="deco-link">launched by financial technology firm PayPal</a>, is off to a slow start. Notably, about 90% of the stablecoin’s supply is still held by its issuer, Paxos, while only 10 individual investors hold more than $1,000 in PYUSD, <a aria-label="on-chain data shows (opens in a new tab)" href="https://pro.nansen.ai/token-god-mode/notable?token_address=0x6c3ea9036406852006290770bedfcaba0e23a0e8" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">on-chain data shows</a>.</p> 
<h3 id="pyusd-s-holdings-on-crypto-exchanges-below-7">PYUSD’s Holdings on Crypto Exchanges Below 7%</h3> 
<p>Earlier this month, payments network giant PayPal launched its stablecoin PYUSD, a digital asset backed by US dollar deposits and Treasury bills. While the launch attracted significant attention in the crypto community, the same cannot be said for the stablecoin itself.</p> 
<p>Notably, new on-chain data shows that PYUSD is grappling with slow adoption rates, with around 90% of its supply still being held in its issuer Paxos Trust’s wallets, blockchain analytics firm Nansen reported. Meanwhile, the stablecoin’s holdings on crypto exchange wallets stand below 7%, with small balances on Kraken, Crypto.com, and Gate.io. Similarly, professional investors’ holdings of PayPal’s stablecoin are negligible.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“On the surface there’s a lack of demand from crypto users for PYUSD when other alternatives exist (might be due to Paypal targeting a different demographic).”</p> <cite>– Nansen said in the report. </cite>
</blockquote> 
<p>Pools in popular decentralized exchanges (DEXs) such as Uniswap’s <a aria-label="PYUSD/USDC (opens in a new tab)" href="https://www.geckoterminal.com/eth/pools/0xd3f5c377a8506af29aeafbc90d1e5c6534f197b4" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">PYUSD/USDC</a> and PYUSD/wETH account for less than 50,000 tokens. Top individual investors displayed a moderate level of interest, with the largest non-exchange holder owning around $10,000 worth of PYUSD.&nbsp;</p> 
<p>Furthermore, less than 10 holders, excluding crypto exchanges or contracts, have a PYUSD balance of more than $1,000.&nbsp;</p> 
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<h3 id="paypal-sparks-competiton-among-stablecoin-issuers">PayPal Sparks Competiton Among Stablecoin Issuers</h3> 
<p>The on-chain data may come as a surprise, considering the hype PayPal USD sparked at its launch a few weeks ago. PayPal’s foray into <a aria-label="stablecoins (opens in a new tab)" href="https://www.coinbase.com/learn/crypto-basics/what-is-a-stablecoin" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">stablecoins</a> stimulated competition even among the most established issuers.</p> 
<p>For example, USDC issuer Circle announced last week it intends to <a href="https://tokenist.com/usdc-to-be-launched-on-six-new-blockchains-as-coinbase-invests-in-circle/" rel="dofollow" class="deco-link">launch the stablecoin on six new blockchains</a> between September and October. Under the terms of the deal, Circle’s partner, Coinbase, acquired a minority equity stake in the blockchain infrastructure firm.&nbsp;</p> 
<p>At the time of writing, PYUSD’s market cap stood at $42.4 million, significantly lower than the world’s largest stablecoins, including <a href="https://tokenist.com/usdts-market-cap-hits-new-ath-at-83-25b-while-other-stablecoins-shrink/" rel="dofollow" class="deco-link">Tether’s USDT</a>, USDC, and DAI, which have a market worth of $82.7 billion, $25.9 billion, and $5.3 billion, respectively.&nbsp;</p> 
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<p><em><strong>Do you think PYUSD’s sluggish start is only a temporary challenge for the payments giant? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/paxos-holds-90-of-pyusd-as-stablecoin-struggles-to-gain-adoption/">Paxos Holds 90% of PYUSD as Stablecoin Struggles to Gain Adoption</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Paxos Holds 90% of PYUSD as Stablecoin Struggles to Gain Adoption

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