Ethereum is a decentralized blockchain-based ledger that supports smart contracts, and is the most widely-used digital-asset platform. Paxos stablecoins follow the ERC-20 protocol, which is a standard for smart contracts on the Ethereum blockchain. The ERC-20 standard specifies a set of standard functions to manage transactions and track account balances. Some of the advantages of Paxos ERC-20 tokens are listed below:
- Seamless wallet support and exchange integration. Any provider that has implemented ERC-20 code can support the token on their platform
- An open network enables use-cases impossible on a closed network
Maximum end-user trust
- Users do not have to trust a given exchange to hold their token
- Reduced liquidity risk – each user can redeem from our regulated trust which publicly ensures they have enough cash on hand
Please note: In order to send and receive USDP, or BUSD, customers must have an Ethereum wallet that accepts ERC-20 tokens.