The idea of money has developed over thousands of years, and yet there is still room for advancement. The promise of digital assets, global fluidity, frictionless, democratized has not been completely realized. Notwithstanding the proliferation of projects, billions of dollars of resources and years consumed in development, even the leading digital asset, Bitcoin, is still bothered by significant issues that limit its use.
Blockchain technology has introduced exceptional innovations distributed ledgers, decentralized trust, smart contracts, etc. yet has not changed on the basic principles that define money, nor has it created the trust of the public required to achieve popular adoption. Paxos Standard is intended to leverage the innovations of blockchain technology to enhance the function of money while being supported by a traditional infrastructure that can guarantee it is trustworthy. As a regulated trust company and financial organization distributing a token backed by U.S. dollar deposits, Paxos can give a token that merges the trust and stability of fiat currency with the use and immediacy of digital assets.
What is Paxos Standard Token (PAX)?
Paxos Standard, or known as PAX, is a token that is supported one-to-one by USD deposits and accessible through Paxos. PAX is accessible one-to-one in exchange for USD and redeemable one-to-one for USD. Upon redemption, PAX tokens are instantly removed from the supply; PAX is only in existence when the corresponding dollars are in keeping.
As a trust company established under New York State banking law and controlled by the New York State Department of Financial Services, Paxos works under governing principles of the highest standard. Unlike a bank, which utilizes client funds for its benefit and funding, a trust company serves as a fiduciary that custodies users deposits and hence will always hold customer funds wholly segregated. All dollar deposits are kept in FDIC-insured U.S. banks or being collateralized by U.S. government treasuries, and customer dollars are all valued for as customer property.
In other words, Paxos takes dollar deposits and distributes Paxos Standard tokens which can be exchanged, transacted and transferred quickly and without friction. Presently, the economy of digital assets is fluid, global and quick, yet faces significant roadblocks when trading in digital assets and fiat because of the inherent obstructions in the traditional banking system. Paxos Standard provides users the convenience of keeping their liquidity in digital assets while still maintaining stability.
Key Features and Advantages
● Paxos Standard tokens are distributed and redeemed by Paxos. As a trust, Paxos circulates PAX directly with no need for any middlemen. It allows more effective operations including shorter redemption windows (PAX can be redeemed for dollars within one business day) and lower charges.
● PAX can be sent and received by anyone with an Ethereum wallet. All activities work according to the rules of a smart contract on the Ethereum platform following the ERC-20 protocol. Because of this smart contract, transactions exclude human error, and the system functions only as programmed.
● PAX is accessible to be listed on exchanges around the world. Since the dollar supports it, it can be utilized as a proxy for learning the value of the dollar as contrasted to other digital currencies.
● The Paxos exchange, itBit, enable users to cash out of their holdings directly and directly to PAX rather than cash if they want. itBit also trades PAX OTC.
● PAX is available 24/7 to aid settlement against any asset that includes crypto, security, and asset tokens or for payments. Unlike fiat, which is only accessible to settle trades during bank business hours, PAX can move anyplace, anytime.
● Built on the Ethereum blockchain, PAX is a programmable token that can participate in the larger global community of tokens, helping create a global platform for programmable money with stability.
Paxos Standard tokens are intentionally designed with simplicity in mind. In exchange for USD 1, 1 PAX is circulated. Similarly, on the redemption side, 1 PAX can be redeemed for USD 1. The exchange will always be one-to-one. Because of this simplicity, the whole system can be written as a basic smart contract, ensuring that it operates under these rules in a programmed way.
As a smart contract on the Ethereum blockchain, Paxos Standard follows the ERC-20 protocol. Ethereum is a decentralized blockchain-based ledger that supports smart contracts; with over 100,000 smart contracts, Ethereum is the most widely-used digital asset platform. A smart contract is a combination of data and programmed procedures for working with that data. Both the integrity of the information and the fidelity of procedure executions are ensured by the distributed consensus protocol of the underlying Ethereum blockchain.
ERC-20 tokens are Ethereum smart contracts that follow a standard protocol for representing custom “tokens” on the blockchain. Specifically, the contract must declare a basic token characteristics, track the total number of tokens, track a token balance for each Ethereum address, and permit address owners to transfer portions of their balance to other addresses.
The benefits of an ERC-20 contract on Ethereum are:
● The security and availability offered by one of the largest global blockchain networks (Ethereum)
● Broad adoption by digital asset stakeholders such as exchanges, digital asset organizations, institutional investors and retail users
● A relatively simple and familiar smart-contract pattern
● Publicly verifiable token supply, account balances and on-chain procedures
Paxos is delighted to share that KuCoin, presently, one of the world’s leading crypto exchanges, has announced its listing to Paxos Standard token with ticker symbol PAX. The disclosure of the listing of PAX on KuCoin implies a growing and immediate demand for a regulated stablecoin.
Paxos issues and settles PAX tokens one-to-one against U.S. dollars, providing holders a digital equivalent of the dollar that can be transferred nearly immediately 24/7. Stablecoins are engaging to active traders who can utilize it to cash out of digital assets more swiftly than if they were to change to dollars. By using PAX, traders can be assured that they are using a coin that is controlled and supported by U.S. dollars held at U.S.-domiciled FDIC-insured banks. Paxos Standard, managed by the New York State Department of Financial Services, is the sole digital asset to be recognized and overseen by a regulator.
Deposits and withdrawals for PAX are open with three pairs BTC/PAX, ETH/PAX, and USDT/PAX. Users will also enjoy 99% off the trading fees on PAX trading pairs starting from Oct. 15, 22:00 to Oct. 22, 22:00, 2018 (UTC+8).