According to its first transparency report, PayPal's stablecoin, PYUSD, has seen limited acceptance despite its potential for global payments.
PayPal Released The First Report On PYUSD
According to its first transparency report, PayPal's stablecoin, PYUSD, has seen limited acceptance despite its potential for global payments. The issuer of PayPal's stablecoin, Paxos Trust, stated last month that it has $45.3 million in assets backing PYUSD. While over $1.5 million was backed by cash deposits, the majority of the reserves were collateralized with US Treasuries via $43.8 million in reverse repurchase agreements.
Despite its commitment to openness, PYUSD's market capitalization of $43.4 million is dwarfed by leaders such as USD Coin (USDC) and Tether (USDT), which are valued at $83 billion and $26 billion, respectively. PYUSD has seen little popularity, with minimal trade volumes on platforms such as Coinbase and Kraken.
Although stablecoins are promoted for cross-border payments, the majority of their volume is generated by crypto trading rather than mainstream applications. According to CoinMarketCap data, PYUSD has seen $3.25 million in trading volume over the past 24 hours. Some of the top volume pairs are on BitMart, which saw $475K, HTX, formerly known as Huobi, recorded $213K, while Uniswap had $125K in trading volume for the stablecoin.
The delayed acceptance of PYUSD implies that traders are cautious to embrace it given the current crypto market conditions. The stablecoin market has seen a decline since the implosion of Terra’s algorithmic stablecoin UST and the FTX failure, with the current market capitalization sitting at $124 billion.
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