Paxos follows in Circle’s footsteps and publishes analysis of the stablecoin reserves PAX and BUSD
Paxos released a breakdown of the reserves of stablecoins PAX and BUSD the day after Circle announced the supporting assets for their USDC. According to the breakdown, as of June 30th, approximately 96% of the reserve is held in cash, while 4% is in US Treasury bills.
Confirmation of reserves by issuers comes amid investor demands for transparency, while regulators warn of the risk of destabilizing crypto markets and potentially spilling over to Wall Street if stablecoins lose confidence.
BUSD is currently the third largest stablecoin, while PAX is the seventh largest by market capitalization. USDT still dominates the stablecoin space with a market cap of $ 61.9 billion and the issuer of Tether announced a reserve analysis in May.
Dan Burstein, General Counsel and Chief Legal Officer of Paxos, said on Wednesday:
“All Paxos cash balances are held in US insured custodians, while all cash equivalents are in US Treasury bills of 3 months or more or overnight repos that are over-collateralized by US Treasuries.
The remaining 4% of the reserves are in US Treasury bills but are classified separately and have a maturity of four months, all in October 2021.
Paxos communications director Becky McClain shared:
“More and more stablecoins appear with different purposes as the market matures and more players join. Paxos is developing a model product that will serve organizations that need trust and transparency as well as supervision and regulation. “
In April, Paxos became the third cryptocurrency company to receive a federal charter from the US Office of the Comptroller of the Currency (OCC) to establish a national trust bank.
According to Coindesk