Blockchain company Paxos launched a US-dollar backed stablecoin after approval from New York regulators, based on a report released on September 10th.
It’s backed by US dollar on a 1:1 scale. The Ethereum blockchain-based stablecoin is called Paxos Standard and has been approved by the NY State Department of Financial Services which will watch over the asset’s insurance and trading.
Paxos is a Trust company and states:
“When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody.”
Investors’ deposits will be held in “accounts at multiple FDIC-insured US-domiciled banks.” Paxos co-founder and CEO Charles Cascarilla says that he thinks the new stablecoin improves on the utility of money by combining stability and regulations of traditional fiat currencies with crypto’s frictionless digital currency.
Investors using the itBit exchange or OTC desk can redeem their holdings for the coin immediately. The coin is being listed on other marketplaces and will be traded under the symbol PAX.
Analytical. Paranoid. OCD. Interested in the world of crypto and how it affects our current world and future. New to investing, not so new to know how crypto works and influence the world of fiat currency. Blockchain is my second wife.
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