As of August 31st, the total assets in the PayPal account “match or exceed the balance of PYUSD tokens.” This is stated in report the issuer’s partner is Paxos.
As of that date, there were $44.4 million worth of PYUSD in circulation. Paxos accounts held assets valued at $44.5 million at face value for the benefit of PayPal stablecoin holders.
97% of reserves ($43 million) came from overnight reverse repurchase agreements on US government bonds. Counterparties to transactions are “reputable financial institutions.” The remaining amount goes to deposits in insured FDIC institutions.
On August 7, the company announced the launch of the US dollar-pegged stablecoin PYUSD based on Ethereum.
The asset caused a controversial reaction from members of the crypto community. Some believed that PYUSD contributes to the mass adoption of digital assets, others pointed to the risks of centralization.
Bank of America experts noted that the launch of a “stable coin” will increase the efficiency of payments and improve the quality of customer service, but the implementation of the asset is unlikely to be large-scale.
According to Nansen analysts, more than 90% of the PYUSD issue is still on the balance sheet of the issuing company Paxos. Only 7% of the coin supply lies in user wallets linked to the Kraken, Gate.io and Crypto.com exchanges.
Recall that US House of Representatives member Maxine Waters expressed “deep concern” about the launch of PayPal’s stablecoin. She pointed out the lack of a regulatory framework for such assets.
Previously, JPMorgan analyst Nikolaos Panigirtzoglou said that PYUSD could benefit Ethereum by increasing the total value of locked funds on the network.
Source: Cryptocurrency
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