Pax Dollar (USDP) is a fiat-collateralized stablecoin founded in September 2018.
Like all stablecoins, Pax Dollar offers the advantage of transacting with blockchain assets through minimized price risk but has been audited thoroughly, and it can prove its reserves. The Pax Dollar tokens 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 while also being available on Binance Smart Chain. Paxos is fully regulated and has 100% cash reserves for their USDP product, and their Paxos Gold (PAXG) produce. As part of their services, Paxos also issues and maintains the resources of Binance Exchange’s BUSD.
The main advantage of Pax Dollar is that there are verifiable cash reserves, and USDP is subject to strict regulatory oversight by the New York State Department of Financial Services, meeting the highest consumer protection standards.
There is no risk that the funds will be unavailable when you redeem your crypto dollars for fiat. Your Pax Dollars are always redeemable at a one-to-one ratio to the US Dollar. There are no real disadvantages to Pax Dollar. The only potential drawback to buying USDP is that it will hold its value, whereas another asset may increase in value over time.
That being said, many ways to earn interest on stablecoins, such as Pax Dollar, make it worth holding if you do not want the volatility of other crypto assets.
USDP is for anyone who wants to store and send money safely, quickly, and affordably. Stablecoins can transform global payments, and USDP can be a trusted mainstream solution. USDP provides financial access to everyone – even those without bank accounts. Anyone can also quickly review the history of transactions on the chain because Pax Dollar is built on the Ethereum blockchain.