{"id":46531,"date":"2021-07-22T13:51:26","date_gmt":"2021-07-22T10:51:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=46531"},"modified":"2025-09-01T16:52:45","modified_gmt":"2025-09-01T13:52:45","slug":"paxos-reveals-backing-for-pax-and-busd-stablecoins","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/paxos-reveals-backing-for-pax-and-busd-stablecoins\/","title":{"rendered":"Paxos reveals backing for PAX and BUSD stablecoins"},"content":{"rendered":"<p>US-dollar\u2013pegged stablecoins from Paxos are fully backed by cash and cash equivalents, as well as U.S. Treasury securities. This was stated by the company&#8217;s general counsel, Dan Burstein.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">There are big differences between regulated <a href=\"https:\/\/twitter.com\/hashtag\/stablecoins?src=hash&#038;ref_src=twsrc%5Etfw\">#stablecoins<\/a> that are backed 1:1 by cash &#038; US T-Bills and unregulated \u00abstablecoins\u00bb backed by various financial instruments. Understand the nuance from our GC and Chief Compliance Officer Dan Burstein <a href=\"https:\/\/t.co\/vDkwdIYaFd\">https:\/\/t.co\/vDkwdIYaFd<\/a><\/p>\n<p>\u2014 Paxos (@PaxosGlobal) <a href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1417881597479641088?ref_src=twsrc%5Etfw\">July 21, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Burstein noted that there are only three regulated dollar-backed stablecoins on the market \u2014 Paxos Standard (PAX), Binance Dollar (BUSD), and Gemini Dollar (GUSD). The issuer of the first two is Paxos Trust Company.<\/p>\n<p>The company holds a conditional <a href=\"https:\/\/u1f987.com\/en\/news\/paxos-secures-conditional-national-bank-license\">national trust bank<\/a> license and plans to obtain a <a href=\"https:\/\/u1f987.com\/en\/news\/paxos-to-apply-for-clearing-agency-licence\">clearing agency<\/a> license. The BUSD stablecoin, issued for the Binance cryptocurrency exchange, has been approved by the New York State Department of Financial Services.<\/p>\n<p>According to the statement, all of Paxos&#8217;s cash reserves are held in insured U.S. depository institutions. The cash equivalents consist of \u201cU.S. Treasury securities with maturities of three months or less, or overnight repo agreements, over-collateralized with Treasury instruments.\u201d<\/p>\n<p>The remaining portion of the reserves is also in U.S. Treasury securities, but Paxos has separated them into a separate category because the maturities of these instruments run to four months.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/paxos.jpg\" alt=\"Backing for PAX and BUSD stablecoins\" class=\"wp-image-143331\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/paxos.jpg 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/paxos-300x150.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/paxos-768x384.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Backing for PAX and BUSD stablecoins. Data: Paxos.<br \/><\/figcaption><\/figure>\n<p>Earlier, Circle disclosed information about the backing of its stablecoin. Cash and cash equivalents <a href=\"https:\/\/u1f987.com\/en\/news\/circle-discloses-details-of-usdc-reserves\">made up 61% of USD Coin (USDC) reserves<\/a>, the remaining coins are backed by bonds and other highly liquid assets.<\/p>\n<p>The issuer of the stablecoin Tether (USDT) <a href=\"https:\/\/u1f987.com\/en\/news\/cash-and-cash-equivalents-accounted-for-76-of-usdt-reserves\">disclosed its reserves in the May quarterly report<\/a>. 76% of the coins are backed by cash and cash equivalents, the rest by bonds, digital assets and other instruments.<\/p>\n<p>In a CNBC interview, Tether&#8217;s chief legal officer Stuart Hoegner stated that the company is working on a full financial audit of USDT and results will be published within a few months. According to him, none of the stablecoin issuers has conducted such thorough scrutiny. <\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"CNBC TechCheck+ chats with Tether's CTO and general counsel \u2014 7\/21\/21\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ZBEqyiO35cQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>According to The Block, the market value of all stablecoins in circulation stands at $111.38 billion. The market capitalization of PAX reached $905 million, BUSD $11.4 billion, according to CoinGecko. For USDT and USDC, the figures were $61.69 billion and $26.85 billion respectively.<\/p>\n<p>Tether remains the leader in the segment. The stablecoin dominance index sits at around 58%.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"324\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/share-2-1024x324.png\" alt=\"Backing for PAX and BUSD stablecoins\" class=\"wp-image-143332\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/share-2-1024x324.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/share-2-300x95.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/share-2-768x243.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/share-2-1536x486.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/share-2.png 1724w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>USDT share in total stablecoin supply. Data: <a href=\"https:\/\/www.theblockcrypto.com\/data\/decentralized-finance\/stablecoins\/share-of-total-stablecoin-supply\">The Block<\/a>.<br \/><\/figcaption><\/figure>\n<p>As reported, U.S. Treasury Secretary Janet Yellen has called for a swift <a href=\"https:\/\/u1f987.com\/en\/news\/us-treasury-secretary-janet-yellen-urges-swift-stablecoin-regulation\">regulatory framework for stablecoins<\/a>.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 crypto news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US-dollar\u2013pegged stablecoins from Paxos are fully backed by cash and cash equivalents, as well as U.S. Treasury securities. This was stated by the company&#8217;s general counsel, Dan Burstein.<\/p>\n","protected":false},"author":1,"featured_media":46532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1625,1504,807],"class_list":["post-46531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance-usd-busd","tag-paxos","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=46531"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46531\/revisions"}],"predecessor-version":[{"id":46533,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46531\/revisions\/46533"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/46532"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=46531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=46531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=46531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}