Paxos has released a <a href="https://paxos.com/wp-content/uploads/2023/09/PYUSD-Monthly-Stablecoin-Reporting-August-2023.pdf" target="_blank" rel="noopener">transparency report</a> on PayPal’s recently launched PYUSD stablecoin. The report, dated Aug. 31, 2023, reveals that the stablecoin is backed by $45.3 million in assets, primarily held in US Treasury Reverse Repurchase Agreements (REPO) and cash deposits at insured depository institutions. 
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 <img decoding="async" src="https://crypto.news/app/uploads/2023/09/1-6-1024x464.png" alt="PYUSD transparency report" class="wp-image-14194589" style="width: 100%;height:462px" width="1020" height="462">
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 Paxos transparency report
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The report also shows that there are $44,376,440 in circulation backed by $45,360,147. 
Even so, this is significantly lower than the total net collateral of the leading stablecoins in the market. 
Latest data shows that <a href="https://www.statista.com/statistics/1316893/tether-reserves-breakdown/" target="_blank" rel="noopener">Tether’s USDT</a> has a total net asset of&nbsp; $81.8 billion, while <a href="https://www.statista.com/statistics/1316893/tether-reserves-breakdown/" target="_blank" rel="noopener">Circle’s USDC</a> has over $26.14 billion.&nbsp; 
 You might also like: <a href="https://crypto.news/paypal-introduces-web3-payment-solutions-for-businesses/"> PayPal introduces web3 payment solutions for businesses </a> 
 Assets backing PYUSD primarily consists of $43.86 million in U.S. Treasury REPO and $1.5 million in cash deposits. 
The cash deposits are held in insured depository institutions and exceed Federal Deposit Insurance Corporation (FDIC) insurance limits, offering an additional layer of asset backing. 
The findings in the report hold importance for both PayPal and the wider stablecoin market. The collateral assets are low-risk, which strengthens the stablecoin’s trustworthiness. 
Additionally, the portfolio has a Weighted Average Maturity (WAM) of just one day, demonstrating high liquidity and minimal sensitivity to interest rate fluctuations. 
 Read more: <a href="https://crypto.news/former-paypal-president-explores-vision-for-bitcoin-as-global-payment-network/"> Former PayPal president explores vision for Bitcoin as global payment network </a>

Paxos report: $44.3m PYUSD in circulation are overcollateralized

crypto.news

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