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" target="_blank" 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" target="_blank" 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" target="_blank" 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" target="_blank" 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.
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 <img src="https://s3.cointelegraph.com/uploads/2024-04/4b31770e-e297-4a63-98b6-a5f3d52ad94c.png" alt="" title="">
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 PayPal USD all-time price chart. Source: CoinGecko
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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" target="_blank" rel="noopener noreferrer nofollow">according</a> to CoinGecko.
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 <img src="https://s3.cointelegraph.com/uploads/2024-04/349c736b-0e56-431e-a18b-95eb916d0f4b.png">
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 Top 13 stablecoins by market capitalization. Source: CoinGecko
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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

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