PYUSD stablecoin reveals reserve proof for the first time, backed by US Treasury RRP, currently widely used within the PayPal ecosystem.

The stablecoin PYUSD, issued through a collaboration between the payment giant PayPal and stablecoin issuer Paxos, has been in circulation for over a month. Recently, the first public reserve attestation report was released, showing that the reserve assets are mainly backed by U.S. Treasury bonds and involved in overnight reverse repurchase agreements (RRP). How has the market been for PYUSD during this period?

First Reserve Report Released, Overnight Operations with RRP

Stablecoin issuer Paxos has published the reserve proof report for PYUSD at the end of August, issued by the independent third-party accounting firm WithumSmith+Brown, PC. As of the end of August, the supply of PYUSD was 44.37 million, with 43 million engaged in overnight reverse repurchase agreement (RRP) transactions with financial institutions to ensure the availability of funds at all times. The assets are over-collateralized with 20-year US Treasury bonds, and in case of default by the trading partner, the collateralized US Treasury bonds can be liquidated to safeguard the funds.

The cash position is $1.5 million. The deposit partner banks include BMO Harris Bank, State Street Bank and Trust Company, First Republic Bank, and Customers Bank.

PYUSD Stablecoin Ranks 19th in Market Cap, Mainly Used within PayPal's System

PYUSD currently has a market cap of $44.38 million, ranking 19th in the stablecoin market. According to CoinMarketCap data, its trading volume on various exchanges is relatively low, with the highest 24-hour trading volume on Huobi, now rebranded as HTX, at only $460,000. On the DeFi protocol side, Uniswap v3 has the largest volume, with a 24-hour trading volume of $610,000. This indicates that the usage of PYUSD is mainly within PayPal's own system.

PayPal has certain restrictions on users for cryptocurrency buying, selling, conversion, and transfers, such as a weekly trading limit of $100,000 and a weekly transfer total limit of $10,000. These amounts are relatively small. According to Jose Fernandez da Ponte, PayPal's Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, in a previous interview on Unchained, the main applications will continue to focus on remittances, B2B payments, and digital goods payments, leveraging PayPal's strong ecosystem support to serve as a bridge between fiat and Web3.

For more details, please see: PayPal's Stablecoin Will Change DeFi? The Restrictions of PayPal USD PYUSD You Didn't Know About