Paxos makes im-PAX with new stablecoin
Call it a PAX Americana if you like but Paxos has unveiled Paxos Standard (PAX) – “the world’s first regulated crypto asset” – and fully collaterised 1:1 by the US dollar.
The token is issued by Paxos Trust, and approved and regulated by the New York State Department of Financial Services.
Charles Cascarilla, CEO and co-founder of Paxos, says PAX represents a “significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy”.
As a digital asset, Paxos Standard can move “instantaneously anywhere in the world”. It is built on the Ethereum blockchain and offers immutability and decentralised accounting.
In an age where uncertainty does surround some crypto activities, the firm says dollar deposits are always held in segregated accounts at multiple Federal Deposit Insurance Corporation (FDIC) insured US-domiciled banks.
Paxos Standard 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 the tokens. The smart contract has been audited by Nomic Labs.
In other recent news, back in May, Paxos closed a $65 million Series B round of financing.
The round was led by a consortium of existing investors including Liberty City Ventures, RRE Ventures, Jay Jordan and others. Paxos has raised a total of $93 million in capital to date.
The new resources are being used to “significantly” scale operations and deliver settlement solutions to capital markets.