What Is Paxos Standard (PAX)?

Paxos is the first blockchain infrastructure platform that is regulated. The platform aims to build a system enabling quick transfer of assets. The company's purpose is to trade, settle, and tokenize assets for its clients.

According to the whitepaper, Paxos Standard with the ticker PAX is a token backed one-to-one by USD deposits. The token is available through Paxos, a trust company regulated by the New York State Department of Financial Services (NYDFS). PAX can be exchanged or redeemed one-to-one for USD. During redemption, the tokens are instantly removed from the supply. PAX tokens exist only when the corresponding dollars are in custody. In other words, Paxos Standard Token works as a stablecoin, which is a class of cryptocurrencies that offers price stability and is backed by a reserve asset like USD. As a result, PAX offers the benefits of blockchain technology as well as the stability of the traditional currency.

Paxos is responsible for the issuance and redemption of PAX tokens. Paxos issues these tokens without requiring any central intermediary. This facilitates more efficient operations, including shorter redemption windows and lower fees. For instance, PAX can be redeemed for USD within one business day. Another prominent feature of PAX tokens is that it is available 24/7 to enable settlement of any type of assets like crypto, security, and asset tokens or for payments.

Discussing the long-term utility of the asset, a tokenized representation of USD alleviates the friction between digital assets and traditional currencies. Due to the restrictions of the banks, converting digital assets into traditional assets takes time and money. Thus, to overcome this issue, Paxos Standard creates a “home base” for the dollar in the digital world with a rapid settlement when cashing out to PAX rather than USD. In other words, Paxos Standard facilitates quick and efficient settlement and offers greater utility and liquidity.

Built on Ethereum, PAX follows the ERC20 standard, which defines the common list of rules to be followed by new tokens in the Ethereum ecosystem. This is a programmable token that can join a larger global community of tokens to help build a stable global platform for programmable money. Moreover, anyone can receive or send PAX within an Ethereum wallet. On the Ethereum platform, all transactions are governed by the rules of a smart contract. These are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain. Due to the smart contracts, transactions are free from human error, and the systems operate only as programmed.

History of Paxos Standard (PAX)

Paxos was founded by Charles Cascarilla and Rich Teo. Cascarilla previously worked for Bank of America, Claiborne Capital Management, and Goldman Sachs. Teo worked for Citi and was a combat signaler in the Singapore Armed Forces. Before creating Paxos, they were also a part of Cedar Hills Capital Partners. Paxos launched the first regulated crypto exchange, known as itBit, in 2012

In 2015, Paxos became the first company to secure a New York State Department of Financial Services Trust Charter for Digital Assets. The company released one of the world’s first regulated stablecoins, i.e., PAX, in 2018. The PAX is now rebranded as USDP. However, other than the name, USDP is identical to PAX.

The whitepaper v1.0 of Paxos Standard was published on September 9, 2018. The new whitepaper v2.01 after Paxos Standard (PAX) got rebranded to Pax Dollar (USDP) was published on August 24, 2021.

How Many Paxos Standard (PAX) Tokens Are There?

The maximum total supply of PAX tokens is around 945 million.

How to Buy Paxos Standard (PAX) Tokens

Users can trade PAX at various exchanges, including Coinbase. It's secure, simple, and easy.