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Paxos Standard (PAX) Is Rebranding to Paxos Dollar (USDP)

3y ago
bullish:

3

bearish:

0

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Key highlights:

  • Paxos is rebranding the Paxos Standard stablecoin to Pax Dollar
  • The ticker will change from PAX to USDP, and the new smart contract will launch on August 31
  • Paxos says their stablecoin is 100% backed by cash and cash equivalents

Paxos Standard is rebranding to Pax Dollar

Paxos has announced that they are rebranding their Paxos Standard stablecoin to Pax Dollar. The name change will be accompanied by a ticker change from PAX to USDP. The company says it’s making the change so that the asset is more easily identifiable as a dollar-backed stablecoin. The new smart contract reflecting these changes will be launched on August 31. 

According to Paxos, their stablecoin is 100% backed by cash and cash equivalents that are three months or less from maturity. Paxos says the cash equivalents backing PAX are either US Treasury Bills or overnight repos overcollateralized by US Treasury instruments. 

Paxos launched their stablecoin in September 2018, and it was part of a new wave of stablecoins that sought to compete with Tether’s USDT. Paxos (PAX), CENTRE (USDC), TrustToken (TUSD), Gemini (GUSD) and others attempted to win market share by providing more transparency than Tether, a company that has often been criticized for allegedly not providing enough information on how the USDT stablecoin is backed.

These Tether competitors mostly relied on periodical attestations from independent accounting firms, confirming that they hold sufficient reserves to back all tokens in circulation.

Out of all the Tether competitors launched in 2018, USDC has found the most success by far. Today,  USDC has a market capitalization of $21.1 billion, which makes it the 9th largest crypto asset on the market.   

PAX is considerably smaller, as it only has a market cap of $945 million. However, that doesn’t tell the whole story about Paxos’ involvement in the stablecoin space, as the company partnered with the Binance cryptocurrency exchange in Sptember 2019 to launch Binance USD (BUSD). BUSD has a market cap of $12.1 billion, and is currently the 12th largest crypto asset and the third largest stablecoin. Even though BUSD uses Binance branding, it’s actually issued by Paxos, which also custodies the assets backing it.

3y ago
bullish:

3

bearish:

0

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