Gemini

United

PayPal USD

Pax Dollar

Gemini Dollar

PayPal USD (<a href="https://cointelegraph.com/paypal-pyusd-price-index" rel="noopener noreferrer nofollow">PYUSD</a>) — a stablecoin issued by the payment giant PayPal and the cryptocurrency company Paxos — saw a significant circulation drop in March.<a href="https://paxos.com/wp-content/uploads/2024/04/PYUSD-Monthly-Stablecoin-Reporting-March-2024-PYUSD-Disclosure.pdf" rel="noopener noreferrer nofollow">According</a> to Paxos’ latest PayPal USD transparency report, PYUSD circulation amounted to $188.5 million in March — 39% less than in February.In <a href="https://paxos.com/wp-content/uploads/2024/03/PYUSD-Monthly-Stablecoin-Reporting-February-2024-PYUSD-Disclosure.pdf" rel="noopener noreferrer nofollow">February</a> and <a href="https://paxos.com/wp-content/uploads/2024/02/PYUSD-Monthly-Stablecoin-Reporting-January-2024-PYUSD-Disclosure-1.pdf" rel="noopener noreferrer nofollow">January</a>, PayPal USD circulation topped at $304 million and $301 million, respectively.As of March 29, PayPal USD treasury included $14.9 million in United States Treasury bonds, with a notional value of around $14.8 million.The current market value of PYUSD collateral in the U.S. Treasury bond-collateralized reverse repurchase agreements is $177.9 million, and the notional position value is approximately $174 million. The total net assets amounted to $192 million, with the notional position value of $189 million.PayPal USD market capitalization has been dropping since late February after reaching all-time high levels of $312 million on Feb. 26, <a href="https://www.coingecko.com/en/coins/paypal-usd" rel="noopener noreferrer nofollow">according</a> to data from CoinGecko.The stablecoin saw some sharp growth at the beginning of 2024, with its market value doubling in just about one month by mid-January.At the time of writing, PYUSD's market capitalization amounted to $194 million, up around 3% in the past seven days.<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/4b31770e-e297-4a63-98b6-a5f3d52ad94c.png" alt="" title=""><figcaption>PayPal USD all-time price chart. Source: CoinGecko</figcaption></figure>The drop in PYUSD circulation came despite a rally in cryptocurrency markets, with Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) breaking all-time highs <a href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat" rel="noopener noreferrer nofollow">above $73,000 on March 13</a>.Cointelegraph approached Paxos for a comment regarding the drop in PYUSD circulation but has yet to receive a response.Related: <a href="https://cointelegraph.com/news/tether-completes-soc-2-audit" rel="noopener noreferrer nofollow">Tether completes ‘gold standard’ security audit</a><a href="https://cointelegraph.com/news/paypal-launches-stablecoin-for-payment" rel="noopener noreferrer nofollow">PayPal launched the PayPal USD stablecoin</a> in collaboration with Paxos Trust in August 2023, promoting it as being designed for digital payments and Web3. Pegged to the U.S. dollar on a 1:1 ratio, PYUSD is backed by U.S. dollar deposits, short-term Treasurys and other cash equivalents.Eight months after launch, PYUSD has emerged as a major stablecoin, ranked the 13th largest stablecoin by market capitalization, beating Paxos’ Pax Dollar (USDP) and Gemini Dollar (GUSD), <a href="https://www.coingecko.com/en/categories/stablecoins" rel="noopener noreferrer nofollow">according</a> to CoinGecko.<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/349c736b-0e56-431e-a18b-95eb916d0f4b.png"><figcaption>Top 13 stablecoins by market capitalization. Source: CoinGecko</figcaption></figure>PYUSD’s market value accounts for just 0.18% of Tether (<a href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow">USDT</a>) stablecoin, which boasts a $106.6 billion market value at the time of writing. The total market capitalization of all stablecoins amounted to $155 billion at the publishing time.Magazine: <a href="https://cointelegraph.com/magazine/defi-bots-pumping-solana-stablecoin-volume/" rel="noopener noreferrer nofollow">The DeFi bots pumping Solana’s stablecoin volume</a>

PayPal stablecoin circulation dropped 38% in March — Paxos

Cointelegraph

Other articles published on Apr 8, 2024

Koala Coin (KLC) Draws a Diverse Crowd from the Stability of Tether (USDT) to the Dynamic World o...

Grayscale Adjusts: Drops Cardano, Prioritizes Major Cryptos

DigiFT Launches US Dollar Money Market Fund Token To Offer Stablecoin Holders An Actively Managed...

Why Charles Hoskinson is Bullish on These Two Cardano Upgrades

Lucky Boo Identified by Professionals as Key Player in Solana Meme Coin Expansion

Emerging Blockchain Innovators: BlockDAG’s $14M Record Presale, Chainlink’s Secure Connections, a...

Join our free newsletter for daily crypto updates!