Paxos today announced the launch of Paxos Standard™, the world’s first regulated crypto asset. The Paxos Standard token is fully backed 1:1 by the U.S. dollar, issued by the Paxos Trust Company, and approved and regulated by the New York State Department of Financial Services.
As a digital asset, Paxos Standard can move instantaneously anywhere in the world. Built on the Ethereum blockchain, it offers the benefits of crypto-assets such as immutability and decentralized accounting. Since it is fully backed by dollars, Paxos Standard offers a liquid, digital alternative to cash that is available 24/7 for instantaneous transaction settlement and is fully redeemable. As a Trust company, Paxos is a fiduciary and qualified custodian of customer funds, and can therefore offer greater protections for customer assets than any other existing stablecoin. Dollar deposits are always held in segregated accounts at multiple FDIC-insured U.S.-domiciled banks.
“Paxos Standard gives financial markets the power to transact in a fully USD-backed asset with the benefits of blockchain technology and oversight from financial regulators,” said Charles Cascarilla, CEO and co-founder of Paxos. “We believe that Paxos Standard represents a significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy.”
Verified Paxos customers can purchase and redeem tokens directly through Paxos.com on a 1:1 basis with USD. When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody.
Investors who trade digital assets through the itBit exchange or OTC desk have the option to withdraw digital assets to Paxos Standard instantaneously. Paxos Standard is available to be listed on other venues and will trade under the ticker symbol PAX™.
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 Paxos Standard tokens. The smart contract has been audited by smart contract auditor Nomic Labs and account balances will be audited by top U.S. auditors.
Paxos has long been a partner to institutional investors, focused on financial compliance since its genesis as the first NYDFS-approved Trust company to offer trading and custody services for digital assets through its exchange, itBit, one of the leading crypto asset exchanges.
“In the current marketplace, the biggest hindrances to digital asset adoption are trust and volatility. As a regulated Trust with a 1:1 dollar-backed stablecoin, we believe we are offering an asset that improves on the utility of money,” added Cascarilla.
Paxos today has also published a white paper explaining product construction and design decisions for Paxos Standard. To download the paper and read more about Paxos Standard, please visit https://standard.paxos.com/whitepaper.pdf.