{"id":84469,"date":"2023-09-13T18:22:53","date_gmt":"2023-09-13T15:22:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=84469"},"modified":"2025-09-12T17:33:03","modified_gmt":"2025-09-12T14:33:03","slug":"paxos-confirms-100-backing-of-paypals-pyusd-stablecoin","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/paxos-confirms-100-backing-of-paypals-pyusd-stablecoin\/","title":{"rendered":"Paxos confirms 100% backing of PayPal’s PYUSD stablecoin"},"content":{"rendered":"

As of August 31, the total value of assets on PayPal’s account “equals or exceeds the PYUSD token balance”. This is stated in a report<\/a> by the issuer’s partner\u2014the Paxos firm.<\/p>\n

As of that date, PYUSD in circulation amounted to $44.4 million. On Paxos’ books in the interests of holders stablecoin<\/a> issued by PayPal were assets valued at $44.5 million at face value.<\/p>\n

97% of the reserves ($43 million) were allocated to overnight reverse-repo agreements on US government bonds. Counterparties to the deals are “authoritative financial institutions.” The remainder is in deposits in insured FDIC<\/span> institutions.<\/p>\n

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\"image-620\"
Data: Paxos.<\/figcaption><\/figure>\n<\/div>\n
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In the event of a counterparty default, Paxos may liquidate collateral. Because all trades carry excess reserves, the risk of losses is not considered material<\/em>, the report says.<\/p>\n<\/blockquote>\n

The company warned that it may incur certain financial losses in the event of the partner bank’s insolvency, as insurance does not cover the entire amount of deposits.<\/p>\n

On August 7, the company announced the launch<\/a> of the US dollar-pegged PYUSD stablecoin based on Ethereum.<\/p>\n

The asset has drawn a mixed reaction<\/a> from members of the crypto community. Some said PYUSD would spur broad adoption of digital assets, while others pointed to centralization risks.<\/p>\n

Bank of America experts noted<\/a> that the launch of the “stablecoin” would improve payments efficiency and customer service, but the rollout of the asset is unlikely to be on a large scale.<\/p>\n

According to analysts Nansen<\/a>, more than 90% of PYUSD supply remains on the issuing Paxos balance sheet. Only 7% of the coin’s supply is on user wallets tied to Kraken, Gate.io and Crypto.com.<\/p>\n

Back in the day, U.S. Representative Maxine Waters expressed<\/a> “deep concern” about PayPal’s stablecoin launch, pointing to the absence of a regulatory framework for such assets.<\/p>\n

Earlier JPMorgan analyst Nikolaos Panigirtzoglou said<\/a> that PYUSD could benefit Ethereum by increasing the total value locked in the network.<\/p>\n","protected":false},"excerpt":{"rendered":"

As of August 31, the total value of assets on PayPal’s account equals or exceeds the PYUSD token balance, according to a Paxos report.<\/p>\n","protected":false},"author":1,"featured_media":84470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[182,1481,807],"class_list":["post-84469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-paypal","tag-pyusd","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=84469"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84469\/revisions"}],"predecessor-version":[{"id":84471,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84469\/revisions\/84471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/84470"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=84469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=84469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=84469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}