The Paxos stablecoin (PAXcreator, )’s Paxos, has announced that the name of its digital asset will change. Paxos Standard has changed to Pax Dollar, and you may soon find it listed under the USDP ticker on your preferred cryptocurrency exchange, wallet, or explorer.
Apart from the nomenclature, USDP and PAX continue to be conceptually the same. Similar to other stablecoins, USDP was created to have a constant value over time when compared to fiat money. USDP’s value is linked to USD. One USDP is equal to one USD at all times.
The benefits of stablecoins are numerous. Moving cryptocurrency assets from one wallet to another is as simple as sending money. You don’t need to input information for an intermediate bank or be concerned about local laws, etc. Stablecoins and cryptocurrency wallets may replace traditional bank accounts for the many individuals who don’t have them throughout the world.
Stablecoins can also be used to benefit DeFi projects (decentralized finance). For instance, you may use your stablecoin assets to participate to lending pools and receive interest.
Other well-known stablecoins besides USDP are USD Coin (USDC) and Tether (USDT). You can see that over time, a naming pattern has developed. And Paxos claims that this is the main justification for renaming their stablecoin.
Paxos keeps some USD and its equivalent in a bank account whenever it releases new tokens. Currently, US Treasury Bills with short maturities are used by Paxos as the USD equivalent. The company’s statements are routinely verified by auditing organisations.
Paxos makes an effort to present itself as a business that is steadfastly dedicated to regulation. It just published a study outlining the variations among the USDP, USDC, and USDT. The corporation claims that due to its reserves, USDC and USDT shouldn’t be regarded as regulated assets. In order for large corporate clients to select Paxos as their preferred partner, Paxos aims to establish itself as the most trustworthy company in the industry.
Circle recently declared that USDC reserves will now be held in cash and cash equivalent. In the future, I’m sure we’ll hear more about stablecoin reserve policies from cryptocurrency firms.
About Pax Dollar
The price of the Pax Dollar is now $1 USD, and its 24-hour trading volume is $5.73 M. In the past 24 hours, USDP has lost 0.10%. Its current distance from its 7-day high of $1.00 and its 7-day low of $0.9945 is -0.37% and 0.60%, respectively. The total supply of USDP in circulation is 945.64 M USDP.
Describe Pax Dollar.
Paxos, a licenced trust company and financial institution that provides the backing of the tokens with US dollar deposits, launched the stablecoin Pax Dollar (USDP). The USDP is a token that Paxos developed that combines the dependability and security of fiat money with the practicality and speed of digital assets.
A brief history of Pax Dollar
Rich Teo and Charles Cascarilla established Paxos, the organisation that created Pax Dollar, in 2012. It introduced Paxos Standard, then known as the Pax Dollar, in September 2018. The fiat-collateralized stablecoin PAX, currently known as USDP, is backed by US dollars in accounts that the company keeps in US depository institutions.
On September 10, 2018, the New York Department of Financial Services (NYDFS) declared Paxos and Gemini to be the first virtual currency organisations to get a Trust charter. The charter states that Paxos is qualified to offer regulated services involving virtual goods and cryptocurrency assets. In keeping with Paxos’ vision of creating a future in which digital assets, commodities, and securities may be traded anywhere and at any time, PAX (now USDP) formally began trading on September 27, 2018.
Paxos changed the name of its Paxos Standard stablecoin to Pax Dollar with the ticker USDP on August 24, 2021. The company claims that the USDP ticker makes it simpler to recognise the Pax Dollar as a US dollar-backed token, particularly as more businesses and consumers enter the cryptocurrency marketplaces.
How Pax Dollar works
A cryptocurrency called the Pax Dollar, or USDP, is backed 1:1 by cash and monetary equivalents. USDP may be bought, sold, or exchanged for US dollars using Paxos. The supply of USDP tokens is immediately reduced after redemption. In reality, USDP tokens are only valid when the equivalent dollars are kept in safekeeping.
On the Ethereum blockchain, USDP is a smart contract that follows the established ERC-20 protocol. Currently, viewing and exchanging USDP is possible on the majority of wallet applications and exchanges that support Ethereum. While Paxos manages the initial issuance of a token and the redemption of tokens for USDP, a smart contract designed to the ERC-20 standard handles all subsequent USDP transactions.
Using deposits in dollars, Paxos generates USDP, which may be easily traded, transferred, and transacted in. Although the market for digital assets is open, worldwide, and quick, it faces substantial obstacles when exchanging them for fiat because of the inherent delays in the traditional banking system. Customers may maintain the stability and liquidity of their digital assets via USDP.
What is Pax Dollar used for?
When you cash out to USDP rather than USD, Pax Dollar enables a quick settlement and a virtual “home base” for the dollar. In other words, Pax Dollar makes it possible for the cash portion of digital asset transactions to be settled quickly and effectively, and normal traders might opt to hold their money in USDP rather than USD owing to the currency’s utility and liquidity.
A widely accepted blockchain-based payment method is Pax Dollar. Pax Dollar, an ERC-20 token built on the Ethereum network, provides utility across a range of applications and an immediate potential global footprint.
Pax Dollar functions as a digital currency accepted for payments globally, lowering the friction involved in cross-border transfers, global transactions, and business.