Paxos Releases First PYUSD Transparency Report: All Transactions Over-Collateralized

ChainCatcher news, Paxos has released its first PYUSD transparency report, which discloses relevant unaudited data for PYUSD as of August 31, Eastern Time, including: total tokens outstanding of approximately $44.37 million; the current market value of collateral in U.S. Treasury reverse repurchase agreements of $43.86 million, with a nominal position value of $43 million; the current market value of collateral in other cash deposits held by custodial deposit institutions of approximately $1.5 million; and the current market value of collateral in total net assets of $45.36 million, with a nominal position value of $44.5 million.

Paxos stated that U.S. Treasury reverse repurchase agreements are contractual arrangements between two parties, where one party agrees to sell securities to the other at a specified price and commits to repurchase the securities later at another (usually higher) specified price. If the counterparty defaults, Paxos is able to liquidate the U.S. Treasury collateral to cover the losses, and since all transactions are over-collateralized, the risk of loss is not considered significant.