Just over a month ago on September 10, 2018 the New York based blockchain company Paxos announced the release of a new stablecoin called Paxos Standard, with the ticker symbol PAX.
This is a fully USD-collateralized stablecoin that is being released by Paxos Trust Company. It is also regulated and approved by the New York State Department of Financial Services.
Paxos Standard was released at the same time as another stablecoin, the Gemini Dollar (GUSD), and because the Gemini Dollar is linked to the Winklevoss twins exchange Gemini it received more media attention and overshadowed PAX to some extent.
But PAX is just as interesting and deserves a close inspection.
What is Paxos?
Paxos describes itself as “the first regulated Trust company with blockchain expertise”, and it is using that expertise to create a modern settlement solution that can eliminate risk and simplify settlements.
What many people may not know about Paxos is that it was actually founded in 2012 as Paxos Trust Company, and that for most of its life it ran the cryptocurrency exchange itBit, which is still operates. The creation of Paxos was a pivot from an exchange platform to a company focused on creating a modern settlement platform using blockchain technology.
In the press release from Paxos, it says that
“as a Trust company, Paxos is a fiduciary and qualified custodian of customer funds, and can therefore offer greater protections for customer assets than any other existing stablecoin”
Here are some important facts you should know about the Paxos Standard:
* It is an ERC-20 token built on the Ethereum blockchain;
* After registering and becoming verified, users can purchase and redeem PAX tokens directly at Paxos.com on a 1:1 basis with the U.S. dollar;
* Paxos tokens only remain in circulation as long as there are corresponding U.S. dollars being held in reserve. When PAX are redeemed for USD the tokens are immediately burned, or destroyed;
* When trading on the itBit platform that is also owned by Paxos, investors will be able to withdraw other digital assets to PAX instantaneously and without fees;
* Paxos Standard will trade under the ticker symbol PAX, and while it remains a utility token it will also be available on other exchange platforms;
Because Paxos Standard was created as an ERC-20 token it can be stored in any ERC-20 compatible wallet;
* The PAX smart contract has been audited by Nomic Labs, a respected smart contract auditor, and the account reserves will be audited by Withum, a nationally top-ranking auditing firm.
Official website: https://www.paxos.com/standard/