The cryptocurrency industry continues to advance by leaps and bounds, regardless of current market conditions. Despite this fact, the actual process of purchasing cryptocurrency remains as byzantine as ever. Users must jump through multiple hoops to deliver their funds to an exchange, often involving multiple currencies and intermediaries. This will change with the introduction of the Paxos Standard Token (PAX). Created by trust-company Paxos, PAX offers several critical features that are not available with other stablecoins.
The past quarter saw an explosion in available stablecoins. While Tether easily ruled the market in the past year, their lack of transparency and public relation failures damaged them. Sensing blood in the water, other financial institutions began circling. From Circle’s USDC to Gemini’s GUSD, everyone is trying to seize the top spot from Tether. However, while all are backed by a reserve currency to peg their value, only Paxos uses a direct gateway to create tokens.
How Paxos May Change the Game
The Paxos system allows verified users to deposit USD, and receive an equivalent amount of PAX. This does not require a different exchange or gateway and can be accomplished directly through Paxos itself. When a US Dollar is deposited, a Paxos Standard Token is created for that specific dollar. The deposited money is held in trust at FDIC-approved banking institutions – until the Token’s value is withdrawn through Paxos. At that point, the PAX is destroyed and the USD is issued to the user.
This is a major streamlining of the crypto-to-fiat gateway system, and makes PAX an incredibly attractive stablecoin. Above and beyond the ease of use, Paxos ensured that their system is completely compliant with New York state regulations – one of the most stringent ecosystems for blockchain and cryptocurrency businesses. Unlike Tether, PAX is transparent, compliant and user friendly.
Binance to Add Trading Pairs
Any cryptocurrency is only as valuable as its trading availability. The best technology in the world cannot save a coin from languishing in third-tier exchanges. This won’t be a problem for PAX – industry leading exchange Binance has already announced that they will be offering multiple trading pairs for the new stablecoin.
Their initial trading pairs include the standard Binance suite – Binance Coin, Bitcoin, Ethereum, Ripple, EOS and Stellar Lumens. As a result, new investors can purchase PAX directly from Paxos, transfer it to Binance and immediately begin trading it for many of the top coins. Paxos has positioned itself to be a leader among the new class of stablecoins, and with Binance’s help, they may deliver on that promise.
Article By: Adam Stone