September 13th, Paxos released its first PYUSD transparency report, which disclosed unaudited data on PYUSD as of August 31st EST, including: the total outstanding amount of unpaid tokens (Total Tokens Outstanding) is about $44.37 million; the current market value of the collateral for the US Treasury repo agreement is $43.86 million, with a nominal position value of $43 million; the current market value of the collateral for other cash deposits held by the custodian is about $1.5 million; the current market value of the collateral in total net assets is $45.36 million, with a nominal position value of $44.5 million.

Paxos stated that the US Treasury repo agreement is a contractual arrangement between two parties, in which 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 collateral for the US Treasury bonds to offset the loss. Since all trades are over-collateralized, the risk of loss is not considered significant.