USDP(PAX)-Pax DollarDetailed Description

USDP(PAX)-Pax Dollar Detailed Description

On August 24, 2021, Paxos Standard (PAX) will be renamed Pax Dollar (USDP).
Paxos is the first fintech company to be directly regulated by and operate under the supervision of the New York State Department of Financial Services. In specific markets where digital assets are regulated, Paxos is uniquely positioned to digitize the flow, exchange, custody and settlement of assets.

On September 10, 2018, the New York Department of Financial Services (NYDFS) simultaneously approved two stablecoins based on Ethereum, Gemini Dollar and Pax Dollar. Both of these stablecoins are encrypted digital currencies anchored 1:1 to the U.S. dollar. These two digital currencies will be regulated by the U.S. government, and account funds will be audited every month. If there is a problem with the account, the U.S. government can pass law enforcement means to perform operations such as freezing. USDP (Pax Dollar) is the world's first compliant stablecoin issued by Paxos, a blockchain startup company. USDP aims to provide liquidity for investors trading encrypted assets by providing a "digital alternative to cash". Instant trade settlement across all asset classes. USDP is a stablecoin backed by 1:1 U.S. dollar, 1USDP is equal to 1 U.S. dollar, and all USDP reserves will be 100% collateralized by the U.S. dollars held in full. Built on Ethereum's ERC-20 standard, USDP can be sent between any two wallets on the Ethereum network, and verified Paxos customers can buy or exchange USDP on its company website.

USDP aims to provide liquidity to investors trading crypto assets by providing a "digital alternative to cash" for instant trade settlement across all asset classes. All USDP reserves will be 100% collateralized by all US dollars held. Built on Ethereum's ERC-20 standard, USDP can be sent between any two wallets on the Ethereum network, and verified Paxos customers can buy or exchange USDP on its company website. Prices on external trading venues fluctuate due to the dynamics of supply and demand for a particular platform at a given moment. We can predict a USD-backed stablecoin price range of 0.99 to 1.01 depending on each exchange’s liquidity and transaction commission structure.

USDP mainly has the following characteristics:

1. USDP is the world's first stablecoin approved and regulated by the government.
USDP was approved by the US government as a stable currency. In September this year, the New York State Department of Financial Services approved the issuance of two stablecoins, GUSD and USDP. It can be said that USDP is one of the first stablecoins approved by the US government.
2. Pax Dollar follows the standard ERC-20 protocol on Ethereum.
Seamless wallet support and exchange integration. Any merchant that has implemented an ERC-20 code can offer support for the token on its platform.
3. USDP is subject to strict and transparent audits.
Although USDT claims to be configured according to the US dollar 1:1. But never receive an audit. No escrow account has been officially announced. This is a place criticized by the people. That is to say, it will only exist when the USDP corresponding to the US dollar is escrowed. Paxos cooperates with the top accounting firms in the United States to conduct regular monthly audits to ensure that the US dollar balance in the above bank accounts is consistent with the token volume. Withum, a top U.S. audit firm, will audit Paxos bank accounts holding U.S. dollar deposits at the end of each month (according to the standards set by the American Institute of Certified Public Accountants AICPA), thereby further enhancing the transparency of the token.
4. The price is stable and the fluctuation range is small.
The biggest feature of a stablecoin should be that it keeps its price stable and can withstand market shocks. However, many stablecoins experience large price fluctuations. For example, USDT often fluctuates greatly. Another example is DAI, which sometimes fluctuates as high as 20%.

Competitive advantage

Paxos team members have extensive experience in the industry and have worked in Wall Street, Silicon Valley and other institutions. On September 10, 2018, the New York Department of Financial Services (NYDFS) simultaneously approved two stablecoins based on Ethereum, Gemini Dollar and Pax Dollar. Both of these stablecoins are encrypted digital currencies anchored 1:1 to the U.S. dollar. These two digital currencies will be regulated by the U.S. government, and account funds will be audited every month. If there is a problem with the account, the U.S. government can pass law enforcement means to perform freezing operations.