Originally launched in November 2017 as Paxos Standard (PAX), but renamed as Pax Dollar (USDP) on August 24, 2021. Pax Dollar is a digital dollar that is backed one-for-one by cash and cash equivalents. It is issued by the Paxos Trust Company and approved and regulated by the New York State Department of Financial Services.
As with other stablecoins like Tether and USDC, Pax Dollar also can allow holders to perform global payments without the buggering paperwork, security checks, and longer processes. USDP provides financial access to everyone – even those without bank accounts in the United States; this means any and everybody can own a USDP token irrespective of their location.
Pax Dollar aids the financial markets by allowing participants to transact in a trusted, secured USD-backed denominated asset with the benefits of blockchain technology and the oversight of financial regulators.
It serves as an icon that represents the significant advancement in digital assets and reform of the traditional financial system while operating at the speed of the Internet.
Pax Trust Company designed Pax Dollar to be the leverage of innovations in blockchain technology. Its mission is to ensure USDP improves the function of money while being supported by a traditional infrastructure that can ensure it is trustworthy and easy to adopt.
In simpler words, Paxos is a regulated trust company and financial institution that issues tokens backed by US dollar deposits. This issued token combines the trust and stability of fiat currency with the utility and immediacy of digital assets.
USDP is the official stablecoin token of Pax Dollar designed with simplicity in mind to be an equal exchange of 1 fiat United States Dollar. Similarly, one USD fiat dollar equals one USDP token; the trust company has ensured the financial exchange stays in a 1-1 ratio.
All ERC-20 tokens are Ethereum smart contracts that follow a standard protocol for representing custom “tokens” on the blockchain. Specifically, the contract must declare basic token characteristics (name, symbol, decimal precision), track the total number of tokens, track a token balance for each Ethereum address, and permit address owners to transfer portions of their balance to other addresses.
Because Pax Dollar follows the standard ERC-20 protocol, most Ethereum-supporting exchanges and wallet applications already have built-in support for viewing and transferring USDP. While the initial issuance of a token and redemption of tokens for USDP occur through Paxos, any other transactions in USDP follow the smart contract written to the ERC-20 specification, relying on the providence of the network rather than any middleman.
The Pax Dollar ERC-20 contract code is available for technical review on GitHub so, anyone can verify the code will operate as Paxos has described.
Features of the USDP token
- The Paxos exchange, itBit, allows users to cash out of their holdings directly and instantaneously to USDP rather than cash if they choose.
- The USDP token can be sent to or received by anyone with an Ethereum wallet as all transactions operate according to the rules of a smart contract on the Ethereum platform following the ERC-20 protocol.
- The token is available to be listed on exchanges around the world and can be a proxy for understanding the value of the dollar as compared to other digital assets.
- Unlike fiat, which is only available to settle trades during bank business hours, USDP can move anywhere, anytime, and is available 24/7 to facilitate settlement against any type of asset.
Who are the Founders of Pax Dollar (USDP)?
The founders of Pax Dollar are Charles Cascarilla and Rich Teo.
Charles Cascarilla is the CEO and co-founder of Paxos. He studied at the University of Notre Dame where he had a Bachelor’s in Business Administration Finance. He is the founding board member of the Association for Digital Asset Markets (ADAM), and a partner at Liberty City Ventures. He is also co-founder and partner at Cedar Hill Capital Partners.
Rich Teo is also the co-founder of Paxos. He attended the University of Michigan where he graduated with a Bachelor’s in Finance and Management. He is the co-founder of CEO Asia, worked as a principal/senior Analyst at Cedar Hill Capital Partners.
What is Pax Dollar (USDP) used?
USDP can be used as a means of payment for other blockchain-based assets. It helps provide a solution to the most complex and difficult aspect of transacting in blockchain-based assets.
It is a stable asset as a hedge during times of volatility.
USDP is popularly used by Investors who trade digital assets to limit exposure to digital asset
Volatility. This helps them benefit from the stability of the US dollar without passing through the delays of converting to fiat.
Through USPD, a complex and programmable digital asset can be transacted with less volatility. Since it is an ERC-20 token, it can handle sophisticated transaction terms and conditions and work within the larger ecosystem of tokens.
Settlement of assets with fiat currency outside of traditional banking hours.
Financial institutions and trading firms can use USDP as a proxy to settle the
the cash component of a trade 24/7.
USP is the perfect alternative to unregulated or unstable offerings that digital-asset custodians and exchanges can provide to market participations.
What are the unique points of Pax Dollar (USDP)?
In recent times, the stablecoin world has been rocked with increased scrutiny as media and policymakers ask what it means to be truly dollar-backed. Pax Dollar and USDP are recognized as assets backed by the US Dollar. This is unlike other “stablecoins,” that claim to be regulated and redeemable to the USD. By owning USDP, you are assured of an instantly recognizable, synonymous, dollar-backed token with trusted and regulated reserves.
How many Pax Dollar (USDP) coins are in circulation?
Pax Dollar has a market cap of $945,071,187 USD. It has a circulating supply of 945,642,940 USDP coins.
It doesn’t have a max. supply as Pax Dollar combines the U.S. dollar’s stability with the efficiency of blockchain technology. As long as a fiat dollar exists, there is an equal digital dollar, for it throughout any time of the day.
Is the Pax Dollar (USDP) platform secured?
As all stablecoins, USDP is very secure as Paxos Trust company has enforced several measures to ensure every USDP token is safe.
They start by being transparent by working with third-party oversight companies that proffer solutions to security technicalities.
This is followed by a regulatory approval by the New York State Department of Financial Services. To date, it continues to be regulated as a trust organization under New York banking law. Also, the Pax Dollar Token was approved by the NYDFS and continues to be overseen by them.
All Paxos funds are held under the detailed security of FDIC-supervised banks in segregated accounts. Top-ranking blockchain auditing forms like Within have been employed to perform detailed screening to ensure parity of the Pax Dollar token and US dollar reserve bank account balances on a month-end basis.
How do I buy Pax Dollar (USDP)?
USDP can be purchased through the following method listed below.
The tokens are available across several exchanges and can be easily purchased by the following steps.
- Open an account with the crypto trading platform.
- Transfer the specific amount of your fiat currency to your account.
- Wait for your deposit to be confirmed and Buy USDP through your trading account.
Which Cryptocurrency Wallet Supports Pax Dollar (USDP)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as USDP tokens. Because of its speed, flexibility, and unique features, it has grown to become one of the most used new platforms. In addition, users can easily use PTPWallet as their main Pax Dollar wallet as it offers a simple and interactive interface, making it easy to navigate its system.