PayPal Releases PYUSD Report to the Public, Stablecoin Adoption Still Slow

PayPal released the PYUSD stablecoin report. (Photo; Doc. PCMag)

JAKARTA - PayPal, a global payments company, recently released its first report regarding the PayPal USD (PYUSD) stablecoin to the public. This comes 39 days after PayPal announced the launch of the PYUSD coin.

PYUSD is a stablecoin issued by Paxos Trust Co and is fully backed by deposits of US dollars, short-term Treasuries and similar cash equivalents. The launch of PYUSD on August 7 has created a 26% surge in PayPal shares, reflecting high investor interest. Despite this, PYUSD adoption in the market appears to be slow.

PYUSD Market Capitalization Increases

Even though PayPal has more than 350 million active users, PYUSD's market capitalization is currently only $43.4 million or the equivalent of IDR 664 billion. Compare this with other stablecoin market leaders such as USDT with a market capital of $83 billion (IDR 1.2 quadrillion) and USDC worth $26 billion (IDR 398 trillion).

PYUSD trading volume in the last 24 hours was also relatively low, reaching $3.1 million (IDR 47.5 billion), while USDT and USDC recorded $22.1 billion (IDR 338 trillion) and $3.2 billion (IDR 49 trillion) in respectively the same trade volume.

Dessislava Aubert, an analyst from Kaiko, stated that these patterns indicate still sluggish demand, saying, "PYUSD's daily trading volume is unstable and quite low compared to other stablecoins."

Despite slow adoption, the transparency report confirms that PYUSD is effectively backed by a $43.8 million (IDR 671 billion) buyback agreement guaranteed by the US Treasury. Not only that, Paxos also has more than $1.5 million (IDR 22.9 billion) in cash deposits. To add to the level of confidence, the company plans to announce the results of the report from the independent audit WithumSmith + Brown, PC.

In a crypto world filled with various stablecoins, transparency is key. PYUSD's transparency report has helped build the stablecoin's credibility in the eyes of the crypto community. This is especially important considering several incidents in the past that have affected investor confidence in other stablecoins.