Paxos, online payment giant PayPalPayPal, ‘s stablecoin indexed 1:1 to the US dollar, published its transparency report for September 2024 regarding USD (PYUSD). The recently published report details PYUSD’s financial situation and asset distribution as of August 31, 2024. While the report emphasizes that PYUSD’s reserves are protected, it also shows that there is a decrease in the total amount of tokens.
Circulation Amount of Stablecoin Dropped Due to Market Conditions
According to the report, PYUSD worth $709.79 million is currently in circulation. Paxosstating that the entire PYUSD token amount is backed by assets.
While the total amount of stablecoin in circulation decreased compared to previous reports, experts attribute this decrease to market conditions.
Asset Allocation and Protected Reserves
The report also explains Paxos’ asset structure in detail. Accordingly, the reserves have a total market value of 111.59 million dollars. US Treasury bill is available. The face value of these bonds was reported as $110.71 million. Moreover, there is a market value of 585.32 million dollars in reserves. US Treasury resale agreements is available. These deals have a nominal position value of $573.85 million. Paxos stated that these agreements are collateralized and the bonds can be converted into liquidity if the counterparty defaults.
On the other hand, there are 23.22 million dollars worth of reserves cash and some part of this amount is under the guarantee of the Federal Deposit Insurance Corporation (FDIC).
While the market value of total assets reached 720.15 million dollars, the nominal total value was announced as 707.79 million dollars.
Report, PayPal PYUSD It reveals that it remains committed to transparency and that the stablecoin has a reliable reserve structure despite market conditions. The fact that PYUSD users’ assets are collateralized provides assurance against possible market fluctuations. As it is known, it is the stablecoin of Tether, the largest stablecoin issuer. USDT It is constantly on the agenda with transparency discussions. This situation cryptocurrency market It can sometimes bring up various unsettling doubts for the stablecoin market, which serves as a dynamo for the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
