Paxos has launched Paxos Standard, pitched as “the world’s first regulated crypto asset”.
Built on the Ethereum blockchain, the token is fully collateralised 1:1 by the U.S. dollar, issued by the Paxos Trust Company, and approved and regulated by the New York State Department of Financial Services.
“Paxos Standard gives financial markets the power to transact in a fully USD-collateralised asset with the benefits of blockchain technology and oversight from financial regulators,” says Charles Cascarilla, CEO and Co-founder of Paxos. “We believe that it represents a significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy.”
Customers can purchase and redeem tokens directly through Paxos.com on a 1:1 basis with USD. When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, the tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody.
Investors who trade digital assets through the itBit exchange or OTC desk have the option to withdraw digital assets to Paxos Standard instantaneously. Paxos Standard is available to be listed on other venues and will trade under the ticker symbol PAX.
It has been designed as an Ethereum token written according to the ERC-20 protocol, so that anyone with an Ethereum wallet will be able to send and receive Paxos Standard tokens. The smart contract has been audited by Nomic Labs and account balances will be audited by “top US auditors”.
Trust and volatility
“In the current marketplace, the biggest hindrances to digital asset adoption are trust and volatility. As a regulated trust with a 1:1 dollar-collateralised stablecoin, we believe we are offering an asset that improves on the utility of money,” says Cascarilla.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.