What Is Pax Dollar (USDP)?
Founded in September of 2018, Pax Dollar 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. Pax Dollar offers the advantage of transacting with blockchain assets through minimized price risk. The Pax Dollar tokens (USDP) 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.
Who Are the Founders of Pax Dollar?
The Pax Dollar 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.
He 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.
What Makes Pax Dollar Unique?
The Pax Dollar is a stablecoin that allows any user to exchange U.S. dollars for the Pax Dollar Tokens. Its main goal is to stabilize the dollar with blockchain technology.
The Paxos 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.
Pax Dollar 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.
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How Many Pax Dollar (USDP) Coins Are There in Circulation?
Pax Dollar combines the U.S. dollar’s stability with the efficiency of blockchain technology. It is a digital dollar, and like other crypto assets can be moved instantaneously anywhere in the world throughout any time of the day. It is stable and is backed 1:1 for the dollar, as well as issued by the Paxos Trust Company. This means that the funds are carefully protected, audited and regulated.
How Is the Pax Dollar Network Secured?
The Pax Dollar (USDP) 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 USDP, 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 USDP 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 USDP 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 Pax Dollar (USDP)?
Pax Dollar or USDP can be purchased, sold and traded on several exchanges, those being:
You can find others listed on our crypto exchanges page. If you are interested in learning how to buy cryptocurrency, you can learn more here.