Pax Dollar (USDP): Regulated stablecoin for a progressive future

What is Pax Dollar?

What is USDP?

What makes USDP crypto special

  • The USDP coin is fully regulated and 100% backed by cash reserves. All USD balances are held in accounts at insured depository institutions in the United States.
  • Cash equivalents include US Treasury Bills (with a maturity of 3 months at most) and overnight repurchase agreements. These are short-term, highly liquid instruments that are readily convertible to USD.
  • Not only is Paxos a blockchain ecosystem, but it is also one of the only fully regulated environments of this kind. This umbrella platform hosts multiple crypto products for individuals, institutions, and enterprises. They are fully regulated and offer less volatile exposure to the crypto market than BTC or ETH.
Key milestones in Paxos’ history. Adapted from Paxos

Is USDP stablecoin safe?

  • Before launching the stablecoin, Paxos Trust Company secured a trust charter for digital assets from the New York State Department of Financial Services (NYDFS).
  • All cash deposits in Paxos’ reserves remain in US banks insured by the Federal Deposit Insurance Corporation (FDIC).
  • Withum, mentioned in Forbes’ list of the best US tax and accounting firms, audits all bank accounts involved in the minting and redemption of the USDP token. An Ethereum smart contract automates both processes.

How does Paxos’ USDP work?

  • A user deposits a USD amount (at least 100 USD) into their Paxos account.
  • The Paxos smart contract generates the equivalent amount of USDP. No fee is charged.
  • The minted USDP tokens are transferred to the user’s account.
  • The process of converting USDP back to USD is similar, but the tokens are instantly burned upon completion to remove them from circulation.

Advantages of Pax Dollar

Security

Regulation

Accessibility

1:1 USD peg

USDP use cases

  • PayPal
  • Société Générale
  • Credit Suisse
  • Revolut
  • StoneX

Where to buy USDP

USDP price

USDP crypto price chart. Source: CoinGecko

USDC vs. USDP

USDP on CoinLoan

Pax Dollar loans

Pax Dollar deposits

  • 10.3% APY on USDP
  • 12.3% APY on USDP with CLT Staking

Pax Dollar on CoinLoan Exchange

Final word

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CoinLoan is a Crypto Lending Platform

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