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About Pax Dollar (USDP)

Pax Dollar (USDP), formerly known as Paxos Standard (PAX), is a stablecoin which is pegged 1:1 to the US dollar. It aims to combine the stability and trust of traditional fiat currencies with the advantages of digital blockchain technology, offering a fast, secure, and cost-effective way to transact globally while minimizing volatility.

    Pax Dollar Frequently Asked Questions (FAQ)

      What is the exact launch date of Pax Dollar (USDP)?

      Pax Dollar (USDP), formerly known as Paxos Standard (PAX), was launched on September 10, 2018.

      What mechanisms are in place to maintain Pax Dollar's peg to the US dollar?

      Pax Dollar (USDP) maintains its peg through a reserve-backed model where every USDP token is fully backed by an equivalent amount of US dollars held in reserve. These reserves are held in cash or cash equivalents and are regularly audited to ensure transparency and trust. The supply of USDP is adjusted by issuing new tokens or redeeming existing ones to match demand, which helps stabilize the price in line with the USD.

      Can you describe the role of Charles Cascarilla and Rich Teo in the founding of Pax Dollar?

      Charles Cascarilla and Rich Teo co-founded Paxos, the company that launched the Pax Dollar (USDP), formerly known as Paxos Standard (PAX). Cascarilla served as the CEO and brought his expertise in financial services, blockchain technology, and asset management, while Teo contributed his experience in the financial industry and technology. Together, they played pivotal roles in developing the Pax Dollar as a stablecoin pegged to the US dollar, aiming to modernize finance by enabling assets to move as quickly as information does today.

      What regulatory bodies oversee the operations of Pax Dollar?

      Pax Dollar (USDP), which was previously known as Paxos Standard (PAX), is overseen by the New York State Department of Financial Services (NYDFS). As a regulated stablecoin, the operations of Pax Dollar are subject to rigorous standards set by this financial regulatory authority.

      How does the Pax Dollar differentiate from other stablecoins on the market?

      The Pax Dollar (USDP) differentiates itself from other stablecoins by being fully backed by the US dollar with reserves held in US regulated financial institutions. It emphasizes regulatory compliance, transparency, and auditability, with monthly attestations by third-party accounting firms to ensure the reserve holdings match the supply of tokens. Paxos, the company behind USDP, is a regulated entity with a trust charter from the New York State Department of Financial Services, which offers a strong trust and security component to the stablecoin.

      Who can use Pax Dollar and for what types of transactions?

      Pax Dollar (USDP) can be used by individuals, traders, and institutions globally for a variety of transactions. It serves as a digital dollar and can be used for online purchases, cross-border transactions, trading in cryptocurrency exchanges, and as a stable store of value. USDP is also suitable for remittances and settling payments that require a stable currency.

      What is the total supply of Pax Dollar (USDP) coins currently in circulation?

      The total supply of Pax Dollar (USDP) coins in circulation is not static and can change frequently. To get the current supply, you should refer to the official Paxos website or a reputable financial data provider.

      What are the processes involved in redeeming USDP for fiat currency?

      To redeem USDP for fiat currency, a user typically follows these steps: 1. Request redemption through the Paxos platform or through a partnered exchange. 2. Undergo an identity verification process if not already completed. 3. Transfer the USDP tokens to the specified Paxos address. 4. Upon verification of the tokens, Paxos processes the redemption. 5. The equivalent amount of fiat currency (e.g., USD) is transferred to the user's bank account.

      How does the Pax Dollar network remain secure on the Ethereum blockchain?

      The Pax Dollar (USDP) network utilizes the security protocols of the Ethereum blockchain. Additionally, smart contracts governing Pax Dollar operations are designed to be resilient, are thoroughly audited by reputable third-party security firms, and adhere to strict regulatory compliance standards.

      In what way can Paxos pause transfers and approvals of USDP tokens?

      Paxos can pause transfers and approvals of USDP tokens using an on-chain 'pause' function, which is designed to comply with regulatory requirements and ensure user protection. This function can only be called by Paxos' authoritative pauser address, and once activated, it halts all transfer and approval operations until it is lifted.

      How does Pax Dollar's status as a regulated trust impact its security and reliability?

      Pax Dollar's status as a regulated trust ensures that it operates under strict regulatory oversight, which mandates compliance with certain financial standards and consumer protection laws. This results in enhanced security and reliability for users, as the trust is required to maintain full reserves of the equivalent fiat currency, undergo regular audits, and adhere to anti-money laundering (AML) and know your customer (KYC) procedures. Consequently, the stability and trustworthiness of Pax Dollar are bolstered by its adherence to these regulatory requirements.

      Can Pax Dollar (USDP) be integrated with all Ethereum-based applications?

      Yes, Pax Dollar (USDP) can be integrated with virtually all Ethereum-based applications as it is an ERC-20 token, which ensures compatibility with the vast majority of platforms and services on the Ethereum blockchain.

      What happens to the USDP tokens once they are redeemed for fiat currency?

      Once USDP tokens are redeemed for fiat currency, the tokens are removed from circulation and thus 'burned'. This is to maintain the 1:1 peg with the US dollar.

      What are the banking requirements that exchanges and traders can outsource to Paxos using USDP?

      Exchanges and traders can outsource various banking requirements such as holding customer deposits, enabling transfer and settlement of funds, and ensuring regulatory compliance for the custody of customer assets using Paxos Standard (USDP).

      What assurances does Pax Dollar provide to ensure the safety of collateralized funds?

      Pax Dollar (USDP) provides safety assurances for collateralized funds by maintaining reserves composed of cash and cash equivalents, audited by a top-ranking auditing firm. The reserves are designed to match or exceed the total supply of USDP in circulation, ensuring that each USDP token can be redeemed for the equivalent amount of US dollars. Regular audits and transparency reports are meant to provide additional confidence in the security and sufficiency of the collateral.