Paxos Releases USDP Transparency Report for December: Total Outstanding Tokens Drop to Approximately $372 Million

Paxos has released its transparency report for December, which includes unaudited financial data for the Pax Dollar (USDP) as of 06:00 on December 30th Beijing time. The report includes:
1. Total Tokens Outstanding of approximately $372,639,175, a decrease of over $74 million or nearly 20% from November;
2. The total market value of the US government repurchase agreements (reverse repos) is approximately $181 million, with a nominal position value of over $177 million;
3. Cash deposits exceeding $185 million through the FDIC deposit network, with other cash deposits held by the deposit-taking institutions totaling approximately $10.9677 million, for a total of approximately $196 million.
Paxos stated that the US government repurchase agreements are contractual arrangements between two parties, where one party agrees to sell securities to the other party at a specified price and promises to buy back the securities at another (usually higher) specified price later. If the counterparty defaults, Paxos can liquidate the US government bonds collateral to offset the loss. As all transactions are over-collateralized, the risk of loss is not considered significant.