bniru posted on November 19, 2019 23:54:10
Paxos Standard (PAX) is a token pegged to the U.S Dollar on a one-to-one ratio. It is available through Paxos, a trust company. An advantage Paxos has is the fact that it is regulated by the New York State Department of Financial Services. Compared to other exchanges and tokens, Paxos has to meet a number of different requirements ranging from the NYDFS capital reserve, and consumer protection to anti-money laundering requirements and others. In this case, investors are more likely to be attracted to this project. Additionally, many have been yearning for some form of regulatory framework to exist so that bad players within the market can be eliminated.
A key benefit highlighted by the firm includes its increased efficiency (i.e. conversions between PAX and dollars can be done within a business day). Moreover, the fact that it is pegged to the USD dollar leaves investors treating it as an equivalent to the USD. As for receiving and sending PAX tokens, it can be done via the Ethereum wallet.
In terms of what Paxos has currently achieved, they’ve launched their new Fiat Gateway service, which is deemed the fastest and simplest way of funding one’s account with fiat currency and being able to swap between USD and stablecoins. As of now, all of their services can be integrated into other platforms via API, which not only increases accessibility, but also helps with scalability concerns. Since October, the U.S. SEC has granted the trust company a “no-action relief”, so, Paxos can settle equities on blockchain and the first two companies to use this service is Credit Suisse and Société Générale (both being investment banks).
Crypto Anonymous posted on July 02, 2019 22:12:24
Considering the regulated nature of this stable coin, it is likely to be trustworthy enough to assume that it won't collapse overnight and is indeed fully backed as it promises. There seem to be some issues for larger traders to redeem their tokens, with extra hassle created by Paxos for this process in individual cases, which seems to suggest some bad faith practices from the company, for more info about this, you can read the linked article and do more research about the legitimacy of these claims being made. Overall I don't expect this to be of any real issue for the average retail trader. However generally I wouldn't recommend keeping much money in any stablecoin for an extended period of time if it isn't absolutely necessary.
Link to the article about hassle around redeeming Paxos tokens: https://www.ccn.com/paxos-standard-hassling-ethereum-traders-trying-to-redeem-stablecoin-pax-for-dollars/
Dr. Doom posted on June 25, 2019 20:20:12
This is a stable coin against US dollars with its reserves in FDIC regulated, US banks. The company is fully regulated and is also the company that launched itBit exchange. PAX is launched in 2018 along with a bunch of competitor stable coins. It is an ERC20 token, so security lies completely with the security of Ethereum. Whether or not this token is censorship resistant or confiscatable: that depends entirely on the whims of US regulators. But in terms of safety of the reserve funds and legitimacy of the team, 100% confidence. Even a senator is part of the board.
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