Blockchain Firm Paxos Renames Paxos Standard (PAX) Stablecoin to Pax Dollar (USDP)
Jimmy AkiAugust 24, 2021Blockchain infrastructure firm Paxos has announced the rebranding of its stablecoin from Paxos Standard (PAX) to Pax Dollar (USDP).
USDP Would Transform Global PaymentsPaxos move to rebrand is part of its plan to distinguish itself from other stablecoin operators. According to the announcement, the firm said the USDP ticker identifies Pax Dollar more as a US dollar-backed token.
Paxos also reiterated its stance that the stablecoin has maintained reserves that are 100% cash or cash equivalents.
The platform has asked its blockchain partners to reflect the new USDP brand ahead of the updated smart contract going live on August 31.
Paxos believes that stablecoins have the ability to transform global payments and USDP is the regulated solution.
“The demand for a regulated USD token has grown significantly. Companies and consumers globally are entering crypto markets and need a safe, dollar-based solution.”
The news of Paxos stablecoin rebrand comes amid Circle’s confirmation that USDC will be 100% backed by cash and short-term US Treasuries by September.
Changes to Circle’s reserves were said to have begun in May 2021. Currently, the USDC stablecoin is reported to be only 61% backed by cash and cash equivalents until it is reversed in September.
Paxos Continues to Distinguish Itself from Competiting StablecoinsPaxos has continued to pride itself as the foremost, regulated, and fully backed stablecoin. Last month, Paxos called out the USDT and USDC stablecoins in a blog for being unregulated. At the time, Paxos also claimed that the USDC and Tether reserves were not comprehensively overseen by any financial regulators.
According to Paxos, there are only three regulated dollar-backed stablecoins in the world. They include PAX, Binance Dollar (BUSD), and the Gemini Dollar (GUSD), issued by Gemini Trust Company.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. When not immersed in the daily events in the crypto scene, he can be found watching legal reruns or trying to beat his Scrabble high score.