Paxos publishes transparency report on PayPal USD stablecoin

Paxos, the company behind PayPal’s stablecoin, PayPal USD (CRYPTO:PYUSD), has released its transparency report for September 2024. 

The report offers detailed insights into PYUSD’s financial backing as of August 31, 2024, and highlights a decline in the circulating supply. 

Despite market fluctuations, the report assures that PYUSD maintains a secure reserve structure.

According to the report, the total circulating supply of PYUSD stands at $709.79 million, fully backed by assets. 

This marks a decrease in supply compared to previous reports, with experts attributing the drop to changing market conditions.

The asset distribution backing PYUSD includes $111.59 million in US Treasury bonds, with a nominal value of $110.71 million. 

Additionally, the reserves hold $585.32 million in US Treasury repurchase agreements, with a nominal value of $573.85 million. 

These agreements are collateralised and can be liquidated if necessary. 

The reserves also include $23.22 million in cash, some of which is insured by the Federal Deposit Insurance Corporation (FDIC). 

The total market value of the reserves reaches $720.15 million, while the nominal value is reported at $707.79 million.

Paxos emphasises that PYUSD remains fully backed by secured assets, showcasing its commitment to transparency. 

The report reassures users that the stablecoin’s collateralised structure provides security against market volatility.

In contrast to PYUSD’s transparency, Tether’s (CRYPTO:USDT) USDT continues to face scrutiny over its reserve disclosures, fueling ongoing debates within the stablecoin market. 

At the time of writing, the PayPal USD price was $0.9995.