BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Transparent Times: Paxos Assures PayPal’s Digital Currency Backed by Real Assets

BlockNews Team by BlockNews Team
September 14, 2023
in CRYPTO, FINANCE, MEDIA
Reading Time: 3 mins read
1
SHARES
13
VIEWS
Share on XShare in TelegramShare on Reddit
  • Paxos has presented an openness report showing PayPal USD stablecoin’s solid financial backing.
  • Data indicates PayPal USD stablecoin assets equal or slightly exceed circulating tokens as of August 31, 2023.
  • A vast majority of these assets, around 97%, are in U.S. Treasury reverse repurchase agreements overseen by Paxos.

Shedding light on its financial operations, Paxos, the company behind PayPal’s digital currency, has shared its first transparency report. This document strongly indicates that the PayPal USD (PYUSD) stablecoin is confidently anchored with real-world assets.

According to the report, as of August 31, 2023, the assets that back PayPal USD match the total value of circulating tokens. The numbers don’t lie: while the circulating tokens are valued at $44.4 million, the assets securing them slightly edge out at $44.5 million.

Taking a closer look, it’s evident that U.S. Treasury reverse repurchase agreements play a major role in providing security for PYUSD. Paxos supervises these agreements, which are crucial for those who have put their money into PYUSD. Nearly $43 million of the assets backing this digital currency, a significant 97%, are tied to these U.S. Treasury agreements.

But what exactly is a reverse repurchase agreement? Simply put, it’s an arrangement where one party agrees to sell securities to another at a specific price, with a mutual understanding of a future transaction. Paxos collaborates with notable financial institutions for these deals. Typically, they mature within a day and are heavily secured by U.S. Treasuries. Paxos also has a fail-safe: if a deal goes south, they can utilize the U.S. Treasury assets to offset any losses. This structure fortifies the trades with a strong safety net.

In addition to these securities, Paxos held a cash sum of $1,500,150 in insured banks by August’s end. These funds, often referred to as cash deposits, sit in banks listed on the IntraFi network. Yet, Paxos sounded an alarm, noting that they don’t use private deposit insurance that’s not protected by reliable entities like the FDIC. This means if a bank goes under, Paxos is in a vulnerable position.

This move towards openness from Paxos comes after they rolled out PYUSD with PayPal on August 7. By the end of August, a staggering 90% of this digital currency was controlled by Paxos. On the flip side, digital currency exchanges, including Kraken, Gate.io, and Crypto.com, accounted for 7% of PYUSD. Boosting the currency’s popularity, BitPay, a leading digital payment provider, accepted PYUSD as a payment option on September 12, placing it alongside other recognized stablecoins like the USD Coin (USDC).

PayPal Debuts Stablecoin for Seamless Transactions

In a bid to further cement its position in the evolving financial ecosystem, PayPal has introduced its own stablecoin, PYUSD. This digital currency is developed with a focus on streamlining payments and transfers. Unlike the often volatile nature of many cryptocurrencies, stablecoins, like PYUSD, maintain a more consistent value. This stability is typically achieved by pegging them to established currencies, in this case, the US Dollar.

PayPal’s move aligns with its overarching objective to be deeply integrated within the cryptocurrency space. By offering PYUSD, the digital payment platform aims to provide its vast user base with smoother, crypto-centric transaction alternatives. This innovation underscores PayPal’s commitment to staying ahead of the curve and ensuring its platform remains versatile for a diverse range of financial activities.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: PaxosPaypalPYUSD
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Cardano’s Price Holds Strong, But On-Chain Data Tells a Different Story
CARDANO

Cardano’s Price Holds Strong, But On-Chain Data Tells a Different Story

September 1, 2025
TRX Faces Fresh Volatility as Justin Sun Deepens WLFI Ties
CRYPTO

TRX Faces Fresh Volatility as Justin Sun Deepens WLFI Ties

September 1, 2025
Solana Price Rebound Above $200 May Be Short-Lived
CRYPTO

Solana Price Rebound Above $200 May Be Short-Lived

September 1, 2025
XRP Could Front-Run the Next Big Crypto Rally: Here is What Needs to Happen
BITCOIN

XRP Could Front-Run the Next Big Crypto Rally: Here is What Needs to Happen

September 1, 2025
XRP Faces Bearish Pressure as $2.74 Support Gets Tested
CRYPTO

XRP Faces Bearish Pressure as $2.74 Support Gets Tested

September 1, 2025
Ethereum Pulls $8B Inflows as Bitcoin Whale Rotation Fuels Breakout Hopes
BITCOIN

Ethereum Pulls $8B Inflows as Bitcoin Whale Rotation Fuels Breakout Hopes

September 1, 2025
Load More

Related News

Cardano’s Price Holds Strong, But On-Chain Data Tells a Different Story

Cardano’s Price Holds Strong, But On-Chain Data Tells a Different Story

September 1, 2025
TRX Faces Fresh Volatility as Justin Sun Deepens WLFI Ties

TRX Faces Fresh Volatility as Justin Sun Deepens WLFI Ties

September 1, 2025
Solana Price Rebound Above $200 May Be Short-Lived

Solana Price Rebound Above $200 May Be Short-Lived

September 1, 2025
XRP Could Front-Run the Next Big Crypto Rally: Here is What Needs to Happen

XRP Could Front-Run the Next Big Crypto Rally: Here is What Needs to Happen

September 1, 2025
XRP Faces Bearish Pressure as $2.74 Support Gets Tested

XRP Faces Bearish Pressure as $2.74 Support Gets Tested

September 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews