PayPal PYUSD stablecoin is 100% backed: Paxos transparency report

According to the data, as much as $43 million– or almost 97% of total possessions in PYUSD custody– are held in Treasury reverse bought agreements.Data from Paxos PYUSD transparency report.”Our repurchase arrangements are overnight maturity with credible financial organizations and overcollateralized with the U.S. Treasuries,” Paxos stated, including:”In the occasion of a default by the counterparty, Paxos is able to liquidate the U.S. Treasury collateral to make itself whole. Not all deposits are covered by the FDIC or private insurance, and Paxos may still incur losses in the occasion of a bank insolvency,” the firm added.Related: PayPals new PYUSD stablecoin deals with legal headwinds and less functionalityThe report comes weeks after Paxos and PayPal debuted PYUSD on Aug. 7.