WHAT IS PAXOS STANDARD TOKEN?
The launch announcement for the Paxos Standard Token was made on September 10, 2018, by the Paxos Company of New York.
Paxos defines itself as "the world's first regulated crypto asset," fully insured 1:1 to the US dollar. The token is issued by Paxos Trust Company and has been approved and regulated by the New York State Department of Financial Services. As a fiduciary company with legal fiduciary authority, Paxos Trust Company can offer regulated services in cryptocurrencies and virtual assets.
The Paxos Standard Token is situated on the Ethereum blockchain and is designed to provide more incredible speed, mobility, flexibility, and accessibility to assets within the global financial system.
As with Tether, there is no higher limit to the number of standard Paxos tokens that can be created with PAX. Paxos standard tokens are created every time money is deposited. But, they only exist if the deposited dollars are in custody. When PAX is exchanged for cash, the tokens are immediately destroyed.
MORE INFORMATION ABOUT THIS STABLECOIN
A nearly strange fact is that the company behind the PAX token, Paxos Trust Company, was created in 2012 and operated the cryptocurrency exchange itBit (which still exists).
Since the launch of Paxos, the token has seen widespread use and has been listed by numerous significant cryptocurrency leaders, including Binance, OKEx, Gate.io, Bittrex, KuCoin, and Huobi. These exchanges offer PAX as an alternative to the controversial Tether.
THE FINAL RESULT
The rapid institutional introduction of the currency shows how strong the demand is for a regulated stablecoin. However, it remains to be seen how PAX can assert itself against Stablecoin's competitors. With Tether, USD Coin, and TrueUSD, three competitors currently (as of January 10, 2019) have higher market capital. Additionally, the Gemini Dollar (GUSD) could also have a voice in the race for (new) market leadership among Stablecoins.
The Paxos default token is still very fresh, so it is difficult to say how prosperous PAX will be, which can also largely depend on institutional investor’s confidence in the stablecoin. It continues to show how PAX can utilize its true strength, full regulation, and traditional real financial institution’s support.