Stablecoin from Paypal experiences a slow start

The launch of a stablecoin by Paypal caused a stir in the crypto sector in August. But interest in PYUSD has been limited so far.

The fact that the world's largest payment service launched its own stablecoin was considered a milestone by many in the crypto industry. But according to an initial transparency report, PayPal's stablecoin PYUSD has so far seen limited use. According to the report, the coin's market capitalization is US$44 million. By comparison, market leader Tether has a market capitalization of a whopping US$83 billion.

PYUSD is mostly covered by government bonds

PYUSD is issued by stablecoin issuer Paxos Trust. According to the company, the stablecoin is backed by assets worth US$45.3 million. Most of this (US$43.8 million) is in U.S. government bonds. US$1.5 million is backed by cash deposits. According to data from CoinMarketCap, PYUSD posted trading volume of only US$2.9 million over the past 24 hours.

Apart from the fact that PYUSD is only accessible to US customers and has only been tradable for a month, the low demand so far is probably also due to the generally difficult situation in the crypto market.