Stablecoins have been thoroughly among the news headlines over the past week after Tether imploded down to as much as 93 cents on October 15, dipping around 4% in value. This caused scrutiny in the usage and actual stability of stablecoins and investigations were launched by analysts and traders alike into discovering the truly ‘stable’ stablecoin. Many shifted from Tether to others, while some took out their holdings altogether from stablecoins and invested in Bitcoin, Ether, and XRP, which resulted in a time of greens for cryptos.
Also keen to figure out how stablecoins are different from each other and how they are functioned to be truly pegged to the USD, BlockPublisher spoke to CEO and Co-Founder of Paxos Standard stablecoin, Chad Cascrilla. Chad discussed how PAX is different to other stablecoins, following the rather debated few days over different stablecoins.
He reported that Paxos aims to be the most trustworthy stablecoin and ensures high standards and audits itself by a credible firm. He said:
Our approach to Paxos Standard is different from other stablecoins in a few ways. We aim to be the most trustworthy stablecoin by: meeting the highest standards for government regulation, being audited by a credible auditing firm, banked by FDIC-insured banks and always collateralized 1:1 for the dollar and easily redeemable.
Paxos also distinguishes itself on the basis of its wide range of listings and corporate relationships with exchanges and organizations in the crypto space, something it takes great pride in. Recently, it announced of achieving the fastest adoption among digital assets from over 20 global exchanges and OTC desks. Chad also reaffirmed the global partnerships formed by Paxos serving as an integral note to its success. He stated:
With deep relationships throughout the digital asset ecosystem, Paxos has also been able to grow faster than other new stablecoins. In just over a month, Paxos has already issued over $50M in PAX that are very actively traded on seven of the top ten exchanges and many of the best known OTC desks and market makers.
Paxos is also discerned on the basis of its compliance with U.S. financial regulations, as it is the first token to be issued by a regulated trust company. Moreover, it is specifically approved for issuance by the New York State Department of Financial Services. It caters to transparency to its fullest, being audited by Withium, an independent auditing firm, while also strictly monitoring all transactions to provide a greater layer of compliance oversight.