Hassan Maishera
Nikolas Sargeant
Review
Learn more about Pax Dollar.
Pax Dollar Review
On September 10, 2018, a New York-based blockchain company called Paxos announced their release of a stablecoin called Paxos Standard (PAX). Similar to Tether, a fully USD-collateralized cryptocurrency. Paxos on the other hand has been regulated and approved by New York State Department of Financial Services.
Paxos Standard (PAX) changed its name to Pax Dollar (USDP) on 24 August 2021. This name change will come to effect on 31 August 2021.
Gemini Dollar, a similar USD-tethered cryptocurrency, backed by the Winklevoss twins, came out on the market during the same period. The Winklevoss twins, as you may know have bigger hype than Paxos. So, the release of Paxos became somewhat overshadowed by this fact. However, Pax Dollar has still become one of the fastest adopted cryptocurrencies out there. Within the first five weeks of existence, the stablecoin was supported by over 20 exchanges and OTC desks.
Solution
Paxos’s platform combines distributed ledger technology with the regulated trust status it has, to minimize settlement risks. Basically, they operate on the formula: Regulated Trust + Blockchain Technology = Modern Settlement Platform.
The principle behind creating this platform has many benefits to it, and the rationale can easily be explained. The simple fact of being a regulated trust, makes Paxos legally eligible to transfer assets and currencies. Combining that permission with blockchain technology, speeds up transactions immensely, while at the same time enjoying the stability and security that blockchains offer. The risk therefore becomes minimized. Thus, businesses and financial solutions will become much more scalable and safe.