What is Paxos Standard Token?
Paxos Standard Token (PAX) is an Ethereum-based, dollar-backed stablecoin, with its value pegged to that of the U.S. dollar (USD). The PAX token is regulated by the New York State Department of Financial Services and is the first digital asset to be issued by a fully-compliant financial institution. It is always redeemable at a one-to-one ratio with the USD, at any time of day or night, and can be used to move in and out of more volatile investments without the associated fees and costs of moving in and out of fiat currencies. There are no fees to convert USD to PAX, and a minimum conversion amount of $100 USD. PAX can be purchased from paxos.com instantly and are redeemable within a period of one business day. PAX is already listed on several major exchanges, including Binance, KuCoin, OKEx, OKCoin and Huobi.
History of Paxos Standard Token
Paxos was launched in late September 2018, as a response to the need for increased competition in the stablecoin space. It was launched on September 28th and less than 2 weeks later there were already 13.3 million PAX is circulation, making it one of the fastest growing stablecoins to ever hit the markets. Paxos has several notable members on its board of directors, including Sheila Bair, ex-chairman of the FDIC, and Bill Bradley, former senator of New Jersey.
How Paxos Standard Token Works
Unlike many other stablecoins, Paxos operates as a “blockchain-powered trust,” thoroughly regulated and compliant with standards set by the U.S. federal government. It thereby eliminates settlement risk and is fully compliant, subject to frequent audits to insure its tokens are properly backed at a 1-to-1 ratio with the USD. It is the first stablecoin to offer these advantages, rendering a highly safe alternative to most other stablecoins. The minimum amount for conversion from paxos.com is $100.
Why Paxos Standard Token?
As a dollar-pegged stablecoin, Paxos offers several advantages over competing stablecoins, including:
Professionally audited. The entire supply of PAX is collateralized by an equivalent amount of USD that is kept at FDIC-insured banks. Paxos uses the nationally top-ranking auditing firm Withum to perform its audits, which performs monthly audits (attestations) to make sure that its collateral is sufficient and of consistent value.
Settlement risk eliminated. Because all of Paxos’ holdings are audited and accounted for, there is no risk of a PAX holder not being able to redeem their tokens for USD on request. The Paxos platform is highly automated, easy to use and conversions take place within a time period of 1 business day.
Ethereum-based. Because Paxos is an ERC20 token, it enjoyed the speed and security of the Ethereum blockchain, making transactions in and out of Ethereum-based assets seamless and near instant. This also has the benefit of reducing fees commonly associated with fiat transactions, transactions can be performed at non-banking hours, and are more internationally friendly.
24/7 customer service. Paxos employs a global customer service team that is available for contact to answer questions and address concerns at any time of day, every day of the week. When a purchase of $100,000 more in PAX is made, customers receive the assistance of a dedicated account manager to provide an even greater level of support.