The Winklevoss twins aren’t the only ones that announced a stablecoin on Monday. Blockchain startup Paxos has gotten its Paxos Standard approved by the New York Department of Financial Services. The crypto coin is also fully back by the US dollar, which means there’s one dollar in their safe for every Paxos Standard dollar that’s being issued on their trading platform.
Paxos wants to add ‘trust and stability’ to the volatile crypto market. “We are offering an asset that improves on the utility of money”, CEO Chas Cascarilla said in a statement. The stablecoin is build on the Ethereum network, which makes it an ERC20 token. It can only be exchanged by verified Paxos customers. Redeemed tokens will be destroyed when they are returned to Paxos, while every token in circulation is backed by dollars held in the firm’s custody. Paxos has updated the whitepaper for its virtual dollar.
Paxos owns the itBit Exchange. Their Paxos Standard dollar even becomes more interesting because the company already is a qualified custodian. Which means the American government deems the company trustworthy to hold client funds. It’s legally regulated and approved by the U.S. Securities and Exchange Commission (SEC). The Paxos Standard dollar will be listed on the itBit Exchange and other exchanges using the ticket symbol PAX.
To celebrate the launch of PAX, early users can get 75 USD in PAX, one month free OTC trading and one month free trading for new accounts on itBit. Read more here.