On Monday, cryptocurrency and blockchain startup Paxos announced the launch of the world’s first regulated crypto-asset. Paxos officials say that the crypto-asset is Paxos Standard token (PAX). Furthermore, the information available shows that it will be a stablecoin. As a stablecoin, the PAX has the US dollar-backing in a ratio of 1:1. Also, investment watchdog New York State Department of Financial Services (NYSDFS) will regulate the token. Similarly, Paxos Trust Company has the responsibility of issuing the tokens.
Just like other cryptocurrency, Paxos Standard has an immutable and decentralized ledger. For featuring US-backing, Paxos Standard offers are liquid. It’s also important to note that Ethereum blockchain will underlie the PAX.
Other Important Features of PAX
Indeed, Paxos Standard offers liquidity. It is also available around the clock. As a result, it is possible to enjoy 24/7 transaction settlements. That is not all. It is fully redeemable. Paxos protects customers’ investments and customers’ assets. Paxos is capable of playing those roles because it’s a trust company. Yes, it offers protection on customers’ assets more than any other stablecoin. They will hold and maintain all the USD deposits in segregated accounts. The aim is to ensure transparency of operations. Noteworthy is that its accounts will be domiciled in US-based banks. In addition, these accounts will be FDI-insured.
Official of Paxos Speaks
Basically, Paxos Standard enables users to transact in a USD-collateralized asset, says the CEO and co-founder of Paxos, Charles Cascarilla. Well, Cascarilla explains further, saying that the platform also has the benefits of blockchain technology and greater regulations. Also, we believe our crypto-asset mirrors significant development in digital assets, Cascarilla says. He pointed out that it leverages the stability of a traditional financial system. The co-founder noted that the crypto-assets enable a global economy that offers no friction.
Important Functions of the Asset
Verified customers can buy and redeem their tokens through the platform on www.paxos.com. The ratio is pegged at 1:1 to the USD. When the tokens are finally in circulation, all the corresponding dollars will be kept in reserve. Also, upon redeeming the USD, Paxos Standard will be destroyed. The company will keep a certain amount of tokens in circulation, which will have USD in the holding.
The Token is ERC-20 Protocol Compliant
In truth, all itBit and OTC Trading Desk users have the opportunities to withdraw their digital assets to Paxos Standard. Also, Paxos Standard will be traded on other platforms. It’s important to know that it will have a ticker PAX.
In addition, offering a ERC-20 protocol is an advantage as almost all the Ethereum non-native tokens have that protocol. What this means is that trading it on the exchange becomes exceedingly easy. It’s also worthy of note that it will offer Ethereum smart contracts as well.
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