PayPal Stablecoin Circulation Plummets 38% in March

PayPal USD (PYUSD), a stablecoin issued by PayPal and Paxos, experienced a significant decrease in circulation in March. According to Paxos’ transparency report, the amount of PYUSD in circulation in March was $188.5 million, a 39% drop compared to the previous month. The circulation of PYUSD reached its highest point in February and January, with $304 million and $301 million, respectively. As of March 29, the PayPal USD treasury held $14.9 million in US Treasury bonds.

The current market value of the collateral for PYUSD, which is held in US Treasury bond-collateralized reverse repurchase agreements, is $177.9 million. The total net assets of PYUSD amounted to $192 million, with a notional value of $189 million. The market capitalization of PYUSD has been declining since late February, reaching its peak at $312 million. As of now, it stands at $194 million, showing a 3% increase in the past week.

It is interesting to note that the drop in PYUSD circulation occurred despite a rally in the cryptocurrency markets, with Bitcoin reaching all-time highs above $73,000 on March 13. reached out to Paxos for a comment on this decrease but has not received a response yet.

PayPal introduced PYUSD in collaboration with Paxos Trust in August 2023, positioning it as a stablecoin designed for digital payments and Web3. It is pegged to the US dollar at a 1:1 ratio and is backed by US dollar deposits, short-term Treasurys, and other cash equivalents. Eight months after its launch, PYUSD has become a significant stablecoin, ranking as the 13th largest by market capitalization, surpassing Paxos’ Pax Dollar and Gemini Dollar, according to CoinGecko. Its market value is only 0.18% of Tether (USDT), which has a market value of $106.6 billion.

The total market capitalization of all stablecoins currently stands at $155 billion.

One thought on “PayPal Stablecoin Circulation Plummets 38% in March

  1. The market value of PYUSD is a mere fraction compared to stalwarts like Tether. It has a long way to go.

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