One of the world’s most renowned cryptocurrency trading platforms, Binance, added a recently launched regulated stablecoin in September. Paxos, the creator of Binance’s addition, launched the Paxos Standard Token (PAX), a stablecoin pegged to the US Dollar in a 1:1 ratio. The New York Department of Financial Services (NYDFS) legally regulates the PAX Tokens.
This is the third stablecoin Binance has added to its platform. Binance also allows users to trade PAX stablecoin with its native crypto-token – the Binance Coin (BNB). Additionally, investors and traders can trade PAX tokens with popular digital currencies like Bitcoin (BTC) and more recently, Ethereum (ETH).
Binance Working on Crypto-to-Fiat Trading
Currently, the exchange majorly supports crypto-to-crypto trading on its platform. However, Binance CEO, Changpeng Zhao (CZ), said that Binance looks to prioritize crypto-to-fiat trading soon. Zhao also sounded optimistic about Paxos stablecoin recent addition to the platform.
“Regulated stablecoins serve as a perfect middle ground where regulators maintain a large degree of control, but the currency also offers far more freedom than traditional fiat for users. This is a big step in the right direction. We highly encourage and support regulated stablecoins, and we applaud Paxos for moving the industry forward,” said Zhao.
Paxos CEO & Co-Founder, Chad Cascarilla, also expressed happiness on getting featured on the most popular cryptocurrency exchange worldwide.
Cascarilla said, “CZ and Binance have built a remarkable exchange that serves the largest global market of digital asset traders. We’re thrilled that they will now have access to Paxos Standard and all the stability, reliability, and freedom of movement that it represents.”
Binance Issues Warning on Paxos Standard Token Stablecoin
Adding the regulated stablecoin PAX to its platform should be helping to bring more liquidity to the Binance exchange. However, Binance has issued a warning to its customers while dealing with the PAX tokens.
“PAX is a stablecoin issued by the Paxos Trust Company and is designed to be pegged one-to-one with USD (1 PAX = $1 USD). Please be cautious if/when the price deviates from this ratio,” the warning reads.
To bring further transparency in trading the PAX tokens, Paxos has appointed a top-ranking audit firm to release monthly reports of the PAX tokens in circulation against the physical USD held by the company.
The Importance of PAX and Stablecoins
Stablecoins are immensely popular among cryptocurrency traders, investors, and trading platforms. Stablecoins mitigate the tedious process of fiat-to-cryptocurrency conversions every time while making a purchase.
This helps regular investors and traders to seamlessly trade digital assets on the trading platform. A number of stablecoins pegged to different fiat currencies like USD and EUR are available on the market.
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