Benzinga - Paxos, the issuer of PayPal Holdings Inc (NASDAQ: PYPL) stablecoin, PYUSD, stated in a transparency report that the PYUSD is supported by cash reserves and U.S. Treasury reverse repurchase agreements.
As of Aug. 31, $45.36 million is backed in Treasury securities, out of which $1.5 million is in cash reserves.
The report highlights that repurchase agreements are characterized by “overnight maturity with reputable financial institutions and over-collateralization with U.S. Treasuries.”
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The PYUSD has been operational for 38 days and ranks 411th out of more than 10,000 crypto assets based on market cap. Paxos collaborates with BMO Harris Bank, Customers Bank, and State Street Bank. The company report states, “In order to support overnight and weekend liquidity, Paxos maintains balances in excess of FDIC insurance limits.”
Also Read: PayPal On And Off Ramps For Web3 Payments: Another Step Closer To Crypto After PYUSD
While 611 addresses hold PYUSD, as of Sep. 14, only the top 100 holders collectively accounted for 99.97% of all PYUSD in circulation.
Separately, this week Paxos refunded $510,750 (20 bitcoin) in the fee paid by the company over a $2,000 (0.7 bitcoin) Bitcoin transaction. This was later blamed on a bug in the system. The fees usually range between $5 to $20 based on network congestion and demand.
Currently, Paxos is underway in talks with Stake.fish to recover the fees. Over which Stake.fish official seems annoyed and regretted.
Read More: Not PayPal's Fault, But Paxos Fat Fingers Led $510,000 Bitcoin Transaction Fee Mishap Due To Internal Bug
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