Paxos renames Paxos Standard stablecoin to Pax Dollar

The company behind Paxos Standard (PAX), Paxos, renamed the stablecoin to Pax Dollar (USDP) to make it easier to identify with the U.S. dollar that underpins it.

1/ We’re excited to announce that Paxos Standard (PAX) will now be known as Pax Dollar (USDP). #PaxDollar #USDP #digitaldollar #stablecoins https://t.co/oMtxEZSzx9

— Paxos (@PaxosGlobal) August 24, 2021

Paxos says it intends to sharpen the stablecoin’s positioning amid strong demand from users and businesses worldwide.

In the press release the company noted that every issued USDP is 100% backed by U.S. dollars and their equivalents. Paxos reaffirmed its commitment to regulatory compliance and transparency.

Paxos’ general counsel Dan Burstein stated that there are only three regulated stablecoins backed by the U.S. dollar on the market: Paxos Standard (PAX), Binance Dollar (BUSD) and Gemini Dollar (GUSD). The issuers of the first two are Paxos Trust Company.

The company holds a conditional license national trust bank and plans to obtain a license clearing agency. The BUSD stablecoin, issued for the Binance cryptocurrency exchange, has been approved by the New York State Department of Financial Services.

Earlier Circle disclosed information about the backing of its stablecoin. Cash and cash equivalents formed 61% of the USD Coin (USDC) reserves, the remaining coins are backed by bonds and other high-liquidity assets.

In August, the issuer of USDC, Centre Consortium announced its intention to move the token’s reserves into dollars and U.S. Treasury bills.

The issuer of the stablecoin Tether (USDT), in its July report, noted that the share of cash and bank deposits that can be withdrawn in two days or less stood at around 10%.

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