Fintech company Paxos inaugurated the first-ever regulated crypto asset Paxos Standard™, according to a press release by PRNewswire on September 10.
Issued by the Paxos Trust Company, the pioneering Paxos Standard token (PAX) is fully collateralized 1:1 by the U.S. dollar which is approved and regulated by the New York State Department of Financial Services.
Powered by the Ethereum blockchain, Paxos Standard offers the benefits of crypto-assets such as decentralized accounting and immutability. And since it is completely collateralized by dollars, Paxos Standard provides a liquid, digital alternative to cash that’s available around the clock for rapid transaction settlement and is fully redeemable. As a digital asset, Paxos Standard has the power to move across the globe in a flash.
On the other hand, as a Trust company, Paxos is a “fiduciary and qualified custodian” of customer funds. This, the company asserted, gives them power to offer greater protections for customer assets than any other existing stablecoin. According to the release, dollar deposits are always held in segregated accounts at multiple FDIC-insured U.S.-domiciled banks.
Paxos CEO and Co-Founder Charles Cascarilla stated:
“We believe that Paxos Standard represents a significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy.”
Cascarilla also noted that Paxos Standard enables financial markets to transact in a fully USD-collateralized asset with the benefits of blockchain technology and financial regulators’ insights.
Via Paxos.com, verified customers can buy and redeem tokens on a 1:1 basis with USD. The corresponding dollars are then held in reserve when the Paxos Standard tokens are in circulation. Upon recovery for dollars, the tokens are immediately destroyed since tokens are only in circulation when the dollars are in custody.
Anyone with an Ethereum wallet will be able to send and receive PAX since Paxos Standard has been designed as an Ethereum token under the ERC-20 protocol.
“In the current marketplace, the biggest hindrances to digital asset adoption are trust and volatility. As a regulated Trust with a 1:1 dollar-collateralized stablecoin, we believe we are offering an asset that improves on the utility of money,”
Investors who trade digital assets via itBit, Paxos’ crypto asset exchange, or OTC desk have the privilege to withdraw assets to Paxos Standard right away. It is also available to be listed on other venues and will trade under the ticker symbol PAX™.
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