Founded in September of 2018, Paxos.com Standard is a flat-collateralized stablecoin. Stablecoins are cryptocurrencies that are designed to minimize the volatility of the price of the stablecoin, relative to a certain stable asset or a basket of assets.
A stablecoin can be pegged to a cryptocurrency or flat money. In some cases, it can even be traded for commodities. Paxos Coin Standard offers the advantage of transacting with blockchain assets through minimized price risk. The Paxos Standard tokens (PAX) are issued as ERC-20 tokens on the Ethereum blockchain and are collateralized 1:1 through the USD held in Paxos-owned US bank accounts.
The Paxos.com Standard was created by Charles Cascarilla and Rich Teo. Charles Cascarilla is the CEO and co-founder of Paxos. He is also the founding board member of the Association for Digital Asset Markets (ADAM), and a partner at Liberty City Ventures.
They also co-founded and is a partner at Cedar Hill Capital Partners, and his past experience includes a portfolio manager at Claiborne Capital Management, financial analyst at Goldman Sachs and analyst at the Bank of America.
Rich Teo is the second co-founder of Paxos. Before that, he worked as a principal/senior Analyst at Cedar Hill Capital Partners. He was also a financial analyst at Citi, and a combat signaler at the Singapore Armed Forces.
Why did Paxos create Paxos Standard?
Paxos Cryptocurrency Standard (PAX) was built so that money can move fast. PAX is a digital dollar. Like other crypto assets, it can move instantaneously, anywhere in the world, any time of any day, and it’s programmable. Unlike other crypto assets, PAX is stable. It is backed 1:1 for the dollar and it’s issued by the Paxos Trust Company, so the funds are carefully protected, audited and regulated. It’s a piece of our future vision for a frictionless, global economy, where all assets can move anywhere instantaneously, 24/7.
What can Paxos Standard be used for?
The crypto-asset space is early in maturation, and initial use cases for PAX will be distinct from future use cases.
Today, Paxos.com Standard can be used to limit exposure to crypto-asset volatility, to remove cross-border transaction fees and to move between crypto-assets with ease or as payment for other blockchain-based assets.
In the future, Paxos Standard can be used for consumer payments, offering a stable store of value for those outside the United States that face currencies with unpredictable volatility.
What Makes Paxos Standard Unique?
The Paxos Standard is a stablecoin that allows any user to exchange U.S. dollars for the Paxos Standard Tokens. Its main goal is to stabilize the dollar with blockchain technology.
The Paxos Cryptocurrency company has a charter from the New York State Department of Financial Services that allows them to offer regulated services within the crypto asset world. The token itself is backed by the USD in accounts that are held by the company at the U.S. depository institutions.
Paxos Standard was built in order to improve the larger financial ecosystem through the creation of a frictionless global network. Here, all digital assets can be mobilized quickly, with a high level of flexibility and accessibility. Paxos’s goal is to create a future where digital assets, commodities and securities can be transferred anywhere, anytime.
Why does Paxos Standard use Ethereum?
Ethereum is a decentralized blockchain-based ledger that supports smart contracts, and is the most widely-used digital-asset platform. Paxos Standard follows the ERC-20 protocol, which is a standard for smart contracts on the Ethereum blockchain. The ERC-20 standard specifies a set of standard functions to manage transactions and track account balances. Some of the advantages of the Paxos Standard ERC-20 token are listed below:
Seamless wallet support and exchange integration. Any provider that has implemented ERC-20 code can support the token on their platform
An open network enables use-cases impossible on a closed network
Maximum end-user trust
Users do not have to trust a given exchange to hold their token
Reduced liquidity risk – each user can redeem from our regulated trust which publicly ensures they have enough cash on hand
How Is the Paxos Standard Network Secured?
The Paxos.com Standard (PAX) can be transacted over the Ethereum blockchain in the same way as Ether or any other ERC-20 asset. If a user wants to redeem PAX, they can send tokens to an address controlled by Paxos that will destroy the tokens and transfer flat currency to the user’s bank account. Through this existence on a public blockchain, it can allow traders and exchanges to use PAX as an alternative to flat currencies and can help them outsource their banking requirements to Paxos. This also allows Paxos to easily be integrated with the Ethereum based applications easily.
When there is a security threat, Paxos can pause transfers and approvals of the PAX Token. This ability to pause is controlled by a single owner role, such as OpenZeppelin’s ownable. The model follows OpenZeppelin’s Pausable. OpenZeppelin contracts help you minimize risk by using tested libraries of smart contracts for Ethereum and other blockchains. Due to the fact that it has a regulated trust, Paxos can legally transfer assets and monies. Through combining that permission with blockchain technology, the transactions can be done rapidly, securely and with no risk.
Where Can You Buy Paxos Standard (PAX)?
Paxos.com Standard or PAX can be purchased, sold and traded on several exchanges, those being:
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One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.