Launched in September 2018, Pax Dollar is a stablecoin backed by fiat. Stablecoins aim to reduce the price fluctuations of cryptocurrencies by tying their value to stable assets or a diversified pool of assets.
These stablecoins can be linked to fiat money or even other cryptocurrencies, and at times, they can be exchanged for commodities. Pax Dollar provides the advantage of engaging in blockchain transactions while minimizing price volatility. The Pax Dollar tokens (USDP) are ERC-20 tokens on the Ethereum blockchain, backed on a 1:1 basis by USD held in bank accounts owned by Paxos in the United States.
Who Are the Founders of Pax Dollar?
The Pax Dollar was the brainchild of Charles Cascarilla and Rich Teo.
Charles Cascarilla serves as the CEO and co-founder of Paxos. He also plays a significant role as a founding board member of the Association for Digital Asset Markets (ADAM) and is a partner at Liberty City Ventures.
In addition, he co-founded and is a partner at Cedar Hill Capital Partners. His career includes roles such as portfolio manager at Claiborne Capital Management, financial analyst at Goldman Sachs, and analyst at Bank of America.
Rich Teo is the other co-founder of Paxos. Prior to this, he held a position as a principal/senior analyst at Cedar Hill Capital Partners. His career also includes roles as a financial analyst at Citi and a combat signaler in the Singapore Armed Forces.
What Makes Pax Dollar Unique?
Pax Dollar allows users to trade U.S. dollars for Pax Dollar tokens, aiming to stabilize the dollar using blockchain technology.
Paxos has received a charter from the New York State Department of Financial Services, enabling them to provide regulated services in the crypto asset sector. The token's value is secured by U.S. dollars stored in accounts at U.S. depository institutions managed by the company.
Pax Dollar was created to enhance the global financial ecosystem by establishing a seamless global network. This network facilitates the swift and flexible movement of digital assets globally. Paxos envisions a future where digital assets, commodities, and securities can be transferred swiftly and effortlessly, anywhere in the world.
How Many Pax Dollar (USDP) Coins Are There in Circulation?
Pax Dollar combines the stability of the U.S. dollar with the advantages of blockchain technology. As a digital representation of the dollar, it can be transferred instantly worldwide at any time of the day. Each USDP token is backed 1:1 by the dollar and is issued by the Paxos Trust Company, ensuring that the funds are well-protected, audited, and regulated.
How Is the Pax Dollar Network Secured?
Pax Dollar (USDP) transactions occur on the Ethereum blockchain, similar to Ether and other ERC-20 assets. Users wishing to redeem USDP can send tokens to a Paxos-controlled address, which will destroy the tokens and transfer fiat currency to the user's bank account. Being on a public blockchain, USDP offers traders and exchanges a fiat alternative, allowing them to rely on Paxos for their banking needs. This setup facilitates seamless integration with Ethereum-based applications.
In the event of a security risk, Paxos can pause USDP token transfers and approvals. This pause feature is managed by a single owner role, following OpenZeppelin's ownable model. OpenZeppelin contracts provide trusted libraries of smart contracts for Ethereum and other blockchains, reducing risk.
As a regulated trust, Paxos is authorized to legally transfer assets and funds. By combining this authority with blockchain technology, transactions can be conducted quickly, securely, and without risk.
Where Can You Buy Pax Dollar (USDP)?
Pax Dollar, or USDP, is available for buying, selling, and trading on various exchanges, including:
Additional exchanges are listed on our crypto exchanges page. If you're interested in learning how to purchase cryptocurrency, further information is available here.
