Paxos officially released the October Pax Dollar (USDP) transparency report, which disclosed the unaudited financial data of USDP as of 6:00 on November 1, including:
1. Total Tokens Outstanding is approximately US$438,824,451, a decrease of nearly US$50 million from September;
2. The current market value of U.S. Treasury bonds is approximately $150 million;
3. The current market value of the collateral in the U.S. Treasury reverse repurchase agreement (overnight maturity and over-collateralization) exceeds US$200 million;
4. Cash deposits through the FDIC deposit network exceed US$85 million, and other cash deposits at insured depository institutions are close to US$1.3 million.
Paxos said a U.S. Treasury reverse repurchase agreement is a contractual arrangement between two parties in which one party agrees to sell a security to another party at a specified price and promises to buy the security back later at another (usually higher) specified price. If a counterparty defaults, Paxos is able to liquidate U.S. Treasury collateral to cover losses, and since all trades are overcollateralized, the risk of loss is not considered material.