Paxos: Building a Digital Dollar – The Capital

A rundown on Stablecoins and PAX

Paxos Standard is a stablecoin pegged against USD on the 1:1 ratio (1 PAX = $1). It was designed to combine dollar payments with blockchain technology, to make payments fast and available anytime. In essence, it is an ERC-20 token. Unlike some digital assets that choose to build on their own blockchain, Paxos chose Ethereum consciously for the simplicity and minimalism of the smart contract. Besides, due to its nature, PAX can be accessed from any wallet that supports Ethereum blockchain.

Origin of And Design behind PAX

Well, for one, Paxos’ design was to create a digital currency that can be trusted. For that purpose, they aim for maximum transparency and security of the reserves. Paxos owns a legal charter from the New York State Department of Financial Services — an authority said to provide the most rigorous overview of the financial sector. As for transparency, Paxos regularly has Nomic Labs audit the PAX smart contract and Withum — its account reserves.

The People Behind PAX

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