Paxos Standard 

Paxos Standard is a digital dollar, otherwise known as a stablecoin, developed by Paxos Trust Company on Ethereum blockchain technology.

What is Paxos Standard? 

  • Paxos Standard (PAX) is a collateralizable fiat (USD) currency based on Ethereum blockchain technology approved by the New York State Department of Financial Services (NYDFS). As a company, Paxos does not charge additional issuance and redemption. 
  • Paxos Standard is fully backed 1:1 for US dollar, and it is issued by the Paxos Trust Company, which protects, audits, and regulates the funds.
  • Paxos Standard runs as an ERC20 token on Ethereum and as an OEP4 token on the Ontology blockchain. 
  • PAX token is designed for a variety of use cases such as peer-to-peer transfers, trading, holding, and commerce.

Key Metrics

TickerPax
Token NamePaxos Standard 
Token Type/ProtocolERC-20
Total Token Supply896,854,921
Current Circulating Supply See coinmarketcap
Market CapitalisationSee coinmarketcap
Token Creation DateSeptember 2018
Can it be mined?No

Who is behind Paxos Standard?

Charles Cascarilla is the CEO and co-founder of Paxos, a financial technology company that provides blockchain solutions for global financial institutions. Charles has over 15 years of financial services experience and has unique insights into combining blockchain technology with traditional systems.

What is the purpose of Paxos Standard?

Paxos Standard was developed to reduce the volatility risk of crypto assets. This includes inflation hedging, volatility reduction, reducing cross-border transaction fees, and conveniently transferring crypto assets or as a payment for other blockchain-based assets.

Insight

Paxos uses technology to tokenize, hold, exchange, and liquidate business client’s assets. Through its Paxos Crypto Brokerage and stablecoin-as-a-service solutions, it enables fintech and financial institutions to deliver cryptographic functionalities to its consumers. It also offers securities and commodity settlement solutions. PayPal, Credit Suisse, Societe Generale, StoneX, Revolut, and other multinational corporations are among Paxos’ clientele. Paxos is a well-funded blockchain business with approximately $ 500 million in total funding from notable investors like OakHC / FT, Declaration Partners, Mithril Capital, and PayPal Ventures. The Paxos Company is a worldwide financial system modernization firm with offices in New York, London, and Singapore. Paxos Standard may be utilized for consumer payments in the future, offering a stable store of value.

  • Paxos Standard can assist in the frictionless flow and rapid liquidation of any asset, not only digital assets but also commodities, securities, real estates, and even more esoteric assets such as art and collectibles.
  • PAX tokens are directly issued and redeemed by Paxos without middlemen. This enables efficient operations, fast processes, and lower fees.
  • Users can redeem PAX tokens from the regulated trust. FDIC-insured US-based banks hold customer balances.
  • PAX guarantees the stability of the platform and does not charge a conversion fee 24/7.
  • Users can transfer PAX with Ethereum wallets. All transactions operate according to the rules of a smart contract.
  • PAX tokens are available on major exchanges as the dollar backs it; it can be used as a dollar value to compare to other digital assets.
  • PAX tokens are created as a home base – Dollar, with an instant settlement when cashing out to PAX rather than USD.
  • PAX has a function called “setLawEnforcementRole”; you can grant administrative permissions to PAX supplies in circulation.
  • Paxos Trust Company has intended to be highly transparent by working with regulators and third parties in the financial services ecosystem. 

Risks

  • Centralized PAX auditing can cause censorship or confiscation by the authorities in case of suspected misconduct or violation of terms and regulations.
  • Since most trading platforms require KYC information to process a large number of transactions or OTC, privacy is reduced when you need to redeem or buy Paxos Standard with fiat currency. 

News and Updates

  • Many large well-known companies are planning on Paxos projects:
    • Forbes: PayPal’s Crypto Partner, Paxos, raises $300 Million at $2.4 Billion Valuation
    • Bloomberg: Bank of America Joins Paxos Blockchain Stock-Settlement Network
    • Roll Call: Federal charter for Paxos edges fintech into banking system
  • Involvement of financial Institutions:
    • CNBC: Paxos CEO on powering PayPal’s crypto ‘next-generation digital wallet’
    • Forbes: The Fintech 50 2021 – The Future of Crypto and Blockchain
    • TechCrunch: Paxos Raises $300 Million to build a Cryptocurrency Infrastructure Giant
  • Paxos is one of the Mastercard partnerships which rolls out crypto cards that can be used anywhere that Mastercard is accepted.

Community & Whitepaper Links

Disclaimer: 
All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.  

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