Paxos Releases First Transparency Report for PYUSD Stablecoin.

According to CryptoPotato, stablecoin issuer Paxos has released its first transparency report for the recently launched Paypal USD (PYUSD) stablecoin. The report confirms the stability and reliability of the assets backing the stablecoin. As of August 31,2023, there were $44.4 million outstanding PYUSD tokens, with a notional position value of about $44.5 million. Over 90% of PYUSD was held in Paxos wallets, while approximately 7% was scattered across various exchanges such as kraken, gate.io, and Crypto.com.

The asset composition for PYUSD is primarily backed by U.S. Treasury reverse repurchase agreements, with 97% of the stable coin, or approximately $43 million, backed by these agreements. Paxos reassured users about this setup,stating that their repurchase agreements are overnight maturity with reputable financial institutions and overcollateralized with U.S. Treasuries. In the event of a default, paxos would sell off the U.S. treasury assets to redress any balances, making prospect of loss virtually negligible.

Paxos also holds about $1.5 million in fiat, but not all fiat deposits are covered by the Federal Deposit Insurance Corporation(FDIC) or private insurance,meaning there could be potential losses in bank insolvency. Bitpay is among the biggest adopters of PYUSD, having recently added the stable coin as a payment option on September 12. Other exchanges holding some PYUSD include Kraken, Gate.io, and Crypto.com. The realease of the transparency report has been praised within the crypto community, as it bolsters trust and stability in PYUSD. #ContentStar #BountyCreator #GateioBountyCreator #NewsMessenger #GateLive #contentstar #MyFancyCreator #HotTopicDiscussion