As of August 31, 2023, PYUSD is fully backed by Overnight Reverse Repos backed by US Treasuries (97%) and cash (3%) in fully segregated and bankruptcy-remote accounts.
For off-chain collateral, we rank storage methods as follows (best to worst)
With regulated custodians not in off-shore jurisdictions
With regulated custodians in off-shore jurisdictions (e.g, BVI, Bahamas)
Others / Undisclosed
PYUSD reserves are fully held in regulated and insured banks, and financial institutions in the USA. Further, each custodian has been pre-vetted by the NYDFS. We believe Paxos may use one or all the following banks, namely BMO Harris Bank N.A, Customers Bank and State Street Bank and Trust Company, in addition to banks within deposit placement networks such as IntraFi Network LLC and Reich & Tang Deposit Solutions LLC. However, we do not know how much is held by whom
All customer assets in PYUSD’s reserves are fully segregated from Paxos’ corporate treasury and held in bankruptcy-remote accounts.