Home Coin news PayPal Stablecoin Circulation Dropped 38% in March

PayPal Stablecoin Circulation Dropped 38% in March

09 Apr, 2024 Coin news

PayPal Stablecoin Circulation Dropped 38% in March

The stablecoin PayPal USD, created by payment powerhouse PayPal in partnership with the cryptocurrency firm Paxos, experienced a noticeable decline in its circulation during March.

Paxos' most recent transparency report on PayPal USD reveals that its circulation was at $188.5 million in March, which is 39% lower than in February.

The circulation of PayPal USD had previously peaked at $304 million in February and $301 million in January.

By March 29, the PayPal USD treasury held $14.9 million in U.S. Treasury bonds, possessing a notional value close to $14.8 million.

The present market value of the collateral backing PYUSD in reverse repurchase agreements secured by U.S. Treasury bonds stands at $177.9 million, with the notional value of the position around $174 million.

The total assets netted to $192 million, against a notional position value of $189 million.

The market capitalization of PayPal USD has seen a downward trend since the end of February, following a peak at $312 million on February 26, as reported by CoinGecko.

Early in 2024, the stablecoin experienced a significant surge, with its market value doubling in roughly a month by mid-January.

As of this writing, the market capitalization of PYUSD is $194 million, reflecting an increase of about 3% over the last seven days.

This decrease in circulation occurred amidst a surge in the cryptocurrency market, where Bitcoin set new record highs, surpassing $73,000 on March 13.

Introduced in August 2023 by PayPal and Paxos Trust, the PayPal USD stablecoin was marketed for its suitability for digital payments and the Web3 environment.

It is pegged to the U.S. dollar at a 1:1 ratio and is backed by U.S. dollar deposits, short-term Treasury securities, and other cash equivalents.

Just eight months after its launch, PayPal USD has become a prominent stablecoin, positioned as the 13th largest by market capitalization, outpacing Paxos' own Pax Dollar (USDP) and the Gemini Dollar (GUSD), according to CoinGecko.

At the time of this report, PYUSD’s market value is only 0.18% of the Tether stablecoin, which has a market valuation of $106.6 billion.

The overall market capitalization of all stablecoins was reported to be $155 billion.

Sources:

https://cointelegraph.com/news/paypal-stablecoin-pyusd-circulation-dropped-38-march-paxos

https://paxos.com/wp-content/uploads/2024/04/PYUSD-Monthly-Stablecoin-Reporting-March-2024-PYUSD-Disclosure.pdf

https://paxos.com/wp-content/uploads/2024/03/PYUSD-Monthly-Stablecoin-Reporting-February-2024-PYUSD-Disclosure.pdf

https://paxos.com/wp-content/uploads/2024/02/PYUSD-Monthly-Stablecoin-Reporting-January-2024-PYUSD-Disclosure-1.pdf

https://www.coingecko.com/en/coins/paypal-usd

https://www.coingecko.com/en/categories/stablecoins

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