Paxos has published a breakdown of its stablecoins reserves PAX and BUSD for the first time: around 96% of reserves were held in cash and cash equivalents, while 4% was invested in US Treasuries as of June 30.
The USDC , revealed its assets supporting the token. Tether, issuer of the biggest stablecoin USDT , a a distribution of reserves in May.
Investors demanded more transparency from stablecoin issuers, while regulators warned that a loss of confidence in stablecoins could destabilize markets cryptocurrencies and potentially even spread to Wall Street.
BUSD is the third largest stablecoin by market cap, while PAX is the seventh, according to data from CoinGecko .
All of Paxos' cash balances are held in insured deposit institutions in the United States, whileall of its cash equivalents are held in "US Treasury Bills with maturities of 3 months or less, or overnight repurchase agreements, oversized by US Treasury instruments," according to a blog post published Wednesday by Dan Burstein, General Counsel and Chief Compliance Officer of Paxos.
The remaining 4% of reserves are in US Treasuries but have been classified separately, as these Treasuries have four months from maturity, all of which mature in October 2021, according to Burstein's post. Paxos reserves are all held in cash and US Treasury bills. Source: Paxos
"As the market becomes more and more mature and more and more players come in, there may be multiple [stablecoin] products that serve different purposes, ”said Becky McClain, communications director at Paxos.
" Paxos builds a product designed to serve an institutional audience that truly demands trust, transparency, oversight and regulation, ”McCl ain said.