Moving forward, Paxos will provide these detailed disclosures on a monthly basis in addition to its attestations. These reports provide the CUSIP of all instruments backing USDP and BUSD, showing that Paxos only backs its stablecoins with cash, overnight loans secured only by US Treasuries, and US Treasuries with a less than 90 day maturity. The monthly reserve reports are available on the Paxos website.

As a Trust Company chartered by the New York State Department of Financial Services ("NYDFS"), Paxos is legally required to hold all regulated stablecoin reserves in bankruptcy remote, fully-segregated accounts and in only cash & cash equivalents. Paxos-issued stablecoins have and always will be fully backed by a dollar. This design ensures that stablecoin holders will always be able to access their funds and redeem their stablecoins, as assets are not co-mingled with Paxos corporate funds. Additionally, Paxos cannot change its reserve composition without explicit approval from the NYDFS. The new monthly reserve reports underscore Paxos' commitment to transparency, trust and full dollar backing. No other stablecoin issuer provides this level of detail and full US dollar backing.

Charles Cascarilla, Paxos CEO and Co-Founder, commented, "The only way we can build trust in stablecoins and grow the adoption of this important technology globally is by continuing to embrace robust oversight and providing unprecedented transparency. Our stablecoins are a dollar backed by cash and equivalents and these enhanced disclosures underscore this point. Paxos has always offered the safest US dollar-backed stablecoins."

The recent volatility of crypto markets demonstrates the importance of full 1:1 dollar backing for stablecoins plus oversight by a primary prudential regulator. While many firms claim to offer stability and safety, without regulatory oversight from a primary prudential regulator, consumers cannot be assured that their funds and assets are safe, fully segregated and bankruptcy remote. The NYDFS recently issued stablecoin guidance that provides a foundational framework for the structure and issuance of stablecoins. Notably, Paxos stablecoins meet this regulatory guidance.