PayPal Shares First PYUSD Report as Stablecoin Market Fades to $131 Billion - Decrypt
While stablecoins like Tether and USDC face headwinds of their own, PYUSD's first reserves report shows a struggle to gain early adoption....
- PayPal's stablecoin PYUSD has a long way to go in terms of adoption, despite its potential for global payments.
- Paxos Trust, the company that issues PYUSD, reported $45.3 million in assets backing the stablecoin, with $1.5 million in cash deposits and the rest in reverse repurchase agreements collateralized with U.S. Treasuries.
- The overall market capitalization of stablecoins has declined since the blowup of Terra's UST stablecoin, dropping from $188 billion to $131 billion.
- Circle's USD Coin and Tether have faced challenges in maintaining their $1 peg, and Terra's UST implosion led to calls for stablecoin legislation.
- PYUSD's market capitalization of $43.4 million is significantly lower compared to USD Coin and Tether, which account for 90% of the stablecoin market.
- Stablecoins are not only used for cross-border payments but also heavily utilized in crypto trades.
The article provides a neutral analysis of PayPal's stablecoin PYUSD and its position in the stablecoin market.