The stablecoin PYUSD's first reserve report is out!

Kamal531

The stablecoin PYUSD, issued in collaboration between payment giant PayPal and stablecoin issuer Paxos, has been in circulation for over a month now. Recently, the first public reserve proof report was released. The reserve assets primarily consist of US Treasury bonds and are used for overnight reverse repurchase agreements (RRP). So, how has PYUSD performed in recent times?

The first reserve report, detailing overnight RRP operations
Paxos has published the reserve proof report for PYUSD at the end of August, which was prepared by the independent third-party accounting firm Withum Smith+Brown, PC. As of the end of August, there were 44.37 million PYUSD tokens in circulation, with 43 million engaged in overnight reverse repurchase transactions with financial institutions. These transactions ensure that funds can be accessed at any time and are overcollateralized with 20-year US Treasury bonds. In the event of a counterparty default, the collateralized US Treasury bonds can be liquidated to secure the funds.

The cash position was $1.5 million. The deposit partner banks are BMO Harris Bank, State Street Bank and Trust Company, and Customers Bank.

PYUSD is ranked 19th in terms of stablecoin market capitalization, with most of its applications remaining within the PayPal system.
PYUSD's current market capitalization is $44.38 million, placing it at 19th in the stablecoin rankings. According to CoinMarketCap data, its trading volume on various exchanges is relatively low, with the highest 24-hour trading volume on Houbi (now renamed HTX) at only $460,000. On DeFi protocols, Uniswapv3 has the highest trading volume, with $610,000 in the past 24 hours. This suggests that PYUSD's applications are mostly confined within the PayPal ecosystem.

PayPal imposes restrictions on users for cryptocurrency buying, selling, converting, and transferring. For example, the weekly trading limit is $100,000, and the weekly total transfer limit is $10,000. According to Jose Fernandez da Ponte, PayPal's Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, in a previous interview on Unchained, the primary use cases for PYUSD are still focused on remittances, B2B payments, and digital goods payments. It leverages the robust PayPal ecosystem to serve as a bridge between fiat and Web3.