Kriptoks

Pax Dollar, also known as USDP, is a stablecoin created by Paxos, a licensed trust firm and financial institution that ensures the backing of the tokens with US dollar deposits. This innovative token combines the stability and confidence of traditional fiat money with the convenience and immediacy of digital assets.

Paxos, the company behind Pax Dollar, was founded in 2012 by Charles Cascarilla and Rich Teo. In September 2018, Paxos launched Paxos Standard, which is the precursor to the current Pax Dollar. As a fiat-collateralized stablecoin, Pax Dollar is backed by US dollars held in accounts maintained by the company at US depository institutions.

In September 2018, the New York Department of Financial Services (NYDFS) announced that Paxos and Gemini were the first virtual currency organizations to be given a Trust charter. This charter allows Paxos to provide regulated services involving crypto assets and virtual commodities. On September 27, 2018, Paxos Standard officially began trading, aligning with the company's vision of creating a world where digital assets, commodities, and securities can be moved anywhere and at any time.

In August 2021, Paxos rebranded its Paxos Standard stablecoin as Pax Dollar and changed the ticker from PAX to USDP. According to the company, the new ticker more easily identifies the Pax Dollar as a US dollar-backed token, particularly as more companies and consumers enter the crypto markets and require a safe, dollar-based solution.

Pax Dollar is a token that is backed 1:1 by cash and cash equivalents. Available through Paxos, USDP can be exchanged or redeemed for US dollars. Upon redemption, USDP tokens are immediately removed from the supply, ensuring that USDP tokens only exist when corresponding dollars are in custody.

USDP adheres to the standard ERC-20 protocol and is a smart contract on the Ethereum blockchain. Most Ethereum-compatible exchanges and wallet apps currently enable viewing and exchanging USDP. Paxos handles the initial issuance of the token and redemption of tokens for US dollars, while all further USDP transactions are handled by a smart contract built to the ERC-20 standard.

Paxos takes dollar deposits and creates USDP, which can be readily exchanged, transacted, and transferred. The digital asset market is fluid, global, and rapid, but it faces significant challenges when moving digital assets for fiat due to delays in the traditional banking system. USDP allows customers to preserve the liquidity and stability of their digital assets.

Pax Dollar offers a digital 'home base' for the dollar, with rapid settlement upon cashing out to USDP rather than USD. This means that Pax Dollar facilitates the speedy and efficient settlement of the cash component of digital asset transactions, and regular traders can choose to keep currency in USDP rather than USD due to its usefulness and liquidity.

Pax Dollar is a standard blockchain-based payment that can be used everywhere. Built on the Ethereum blockchain as an ERC-20 token, Pax Dollar offers usefulness across various applications and an instant global potential footprint. As a digital currency accepted for worldwide payment, Pax Dollar reduces the friction associated with international payments, such as cross-border remittances, global transactions, and commerce.

Additionally, Pax Dollar can be used for hedging against market volatility. As a stablecoin, the value of USDP is pegged to the US dollar, making it a reliable option for traders and investors looking to protect their assets from market fluctuations.

Paxos also offers a number of solutions for businesses and institutions looking to integrate stablecoins into their operations. This includes the Paxos Settlement Service, which allows for the instant settlement of trades, and the Paxos Confirmation Service, which provides real-time confirmation and tracking of transactions.

Paxos also offers a number of solutions for businesses and institutions looking to integrate stablecoins into their operations. This includes the Paxos Settlement Service, which allows for the instant settlement of trades, and the Paxos Confirmation Service, which provides real-time confirmation and tracking of transactions.

Another use case of Pax Dollar is in the field of remittances. With USDP, individuals can easily and quickly send money across borders without the need for traditional banking systems and with minimal fees. This can greatly benefit migrant workers, who often have to pay high fees to send money back to their families.

In summary, Pax Dollar is a stablecoin that offers the stability of fiat money with the speed and convenience of digital assets. It is a reliable option for traders and investors, businesses, and individuals looking for a dollar-based solution in the digital asset space. Paxos continues to innovate and provide solutions for the rapidly growing digital asset market, making Pax Dollar a valuable addition to the stablecoin space.