Paxos Issues PAX for Dollars therefore as Good as Fiat CurrenciesNovember 6, 2019
Paxos Standard is a banking company organized under the New York State Banking Law and regulated by the New York State Department of Financial Services.
Paxos Standard offers the PAX token. Corresponding one-to-one USD Deposits back each token. PAX is redeemable for USD. PAX exists only when the corresponding USD is in custody.
Being a trusted company, PAX functions as a fiduciary. Therefore, the company keeps all the customer deposits wholly segregated. The Dollar deposits are held in U.S. banks, which are FDIC-Insured; otherwise, the deposits are collateralized by U.S. government treasuries.
Paxos Issues PAX for Dollars. Therefore, several investors consider PAX to be as good as USD. Several investors are finding it challenging to convert digital assets to USD. The platform serves as a home base for the dollar. In the future, they plan to offer commodities, real estate, securities, and several other assets like fine art and other collectibles.
This is the world’s most liquid token. Recently, the Securities and Exchange Commission (SEC) received the no-action relief letter, and therefore they are all set to introduce Paxos Settlement Service. They are soon going to process transactions for broker-dealers of U.S. equity securities; however, it will be limited in number.
Credit Suisse and Société Générale” are the early adopters of the Settlement Service. With this service, clients will be able to achieve meaningful reductions in fees. The settlement service is based on a blockchain solution.
Charles Cascarilla, CEO and Co-Founder of Paxos, stated, “The U.S. equities business continues to face unprecedented consolidation and economic pressures, requiring a comprehensive transformation of market structure.” Further clarified, “This is an important first step on our journey to reimagine the entire post-trade infrastructure, and one that creates immediate benefits for market participants.”
Cryptocurrency illiquidity is a major problem. Several community currencies seem to be usable and thriving in the beginning. Still, after some time, they are not there in the market anymore, and they are wiped out of the market because the currency is neither usable nor convertible. To be listed in exchanges is a battle these days with increased regulatory scrutiny.
The settlement system will be further customized to provide for a positive impact on the cost structure in the immediate and long-term. Cryptocurrency-To-USD Payment Solution, which will help to convert cryptocurrency to USD and USD to cryptocurrency in a fully compliant manner, is a meaningful benefit that clients are looking for.