Users deposit funds into Paxos account and receive BUSD or USDP at a 1:1 rate.

Paxos is a financial technology company that is the principal architect of BUSD & USDP - full-reserve fiat stablecoins that bring US dollar liquidity on-chain.

Paxos is a private company registered in the US. Paxos' investors include OakHC/FT, Declaration Partners, Mithril Capital and PayPal Ventures etc.

github

twitter

etherscan

website

Stablecoin issuers

Paxos

# Paxos Revenue Methodology

## 1. Overview

Revenue measures the portion of reserve yield generated by Paxos-issued stablecoins that is retained by the protocol. The earnings generated from the underlying reserve assets backing Binance USD, PayPal USD, and Global Dollar are reflected by this metric, after any yield is distributed to supply-side participants. For certain assets like Global Dollar, yield is distributed to external partners within the Global Dollar Network, whereas yield from PayPal USD and Binance USD is fully retained by Paxos.

## 2. Data sources

- **Blockchain events**: Circulating supply data for Binance USD, PayPal USD, and Global Dollar, covering Ethereum and other supported chains
- **External data**: Historical 3-month US Treasury bill rates and overnight bank funding rates from the Federal Reserve Bank of New York

## 3. Step-by-step calculation

### Component A: Binance USD, PayPal USD, and Global Dollar circulating supply tracking

- **Purpose**: The daily outstanding supply of Paxos-issued stablecoins is determined.
- **Logic**: Daily circulating market capitalization is aggregated for Binance USD, PayPal USD, and Global Dollar across all supported chains. Bridged balances are explicitly excluded from the calculation to isolate native issuance.
- **Key fields**: `outstanding_supply`, `product_id`, `chain_id`

### Component B: Reserve yield rate determination

- **Purpose**: The daily annualized yield rate applied to the reserve assets is established.
- **Logic**: For dates up to January 1, 2025, the daily rate is derived from historical 3-month US Treasury bill rates. For dates from January 2, 2025, onwards, the overnight bank funding rate from the Federal Reserve Bank of New York is applied. Rates are filled forward to account for weekends and holidays when financial markets are closed.
- **Key fields**: `rate`, `timestamp`

### Component C: Gross reserve yield calculation

- **Purpose**: The gross yield generated by the reserve assets backing each stablecoin is calculated.
- **Logic**: Gross daily fees are calculated by multiplying the outstanding circulating supply of each stablecoin by its yield-bearing share (configured at 100% for Binance USD, PayPal USD, and Global Dollar) and the daily annualized rate, divided by 365.
- **Key fields**: `fees`, `yield_bearing_share`

### Component D: Global Dollar Network and partner yield distribution

- **Purpose**: The portion of reserve yield distributed to external partners is determined.
- **Logic**: The supply-side share is applied to the gross reserve yield. For Global Dollar, 100% of the generated yield is allocated to the partners of the Global Dollar Network. For Binance USD and PayPal USD, the supply-side share is set to 0%, meaning no yield is distributed to external participants.
- **Key fields**: `fees_supply_side`, `supply_side_share`

### Component E: Net revenue aggregation

- **Purpose**: The net revenue retained by Paxos is calculated.
- **Logic**: Net revenue is calculated by subtracting the supply-side fees from the gross reserve yield. Daily values are aggregated by chain and product.
- **Key fields**: `revenue`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Paxos

Revenue

Revenue

Competitive landscape

Chain breakdown