Project Paxos in detailsEndy Callahan
Paxos Trust Company was established in 2012, with headquarters in New York. In 2018, it developed a blockchain platform and cryptographic currency backed by dollars.
Specifics of Paxos Project
The Paxos platform is both a regulated trust and DLT distributed registry technology. Due to it, became possible to minimize risks in financial settlements. As a result, the following possibilities appeared:
- transfer funds and assets as a trust;
- securely and efficiently conduct transactions;
- full integration of the platform into the business environment.
The system is based on the Ethereum blockchain.
Tasks solved by Paxos
The project is designed to solve the following problems:
- to reduce operating expenses when making trade transactions;
- to instantly convert digital assets into real and in the opposite direction;
- to reduce the risks of counterfeiting and reducing the number of counter parties;
- to lower fees for money transfers;
- asset conversion around the clock;
- conversion into fiat money without commission;
- token insurance by the Federal Deposit Insurance Corporation;
- lack of volatility inherent in other digital money.
The Paxos Standard token was the first to be issued by a financial institution and fully provided it with a dollar. This statement was made by the owners of the company. The organizational base of other stablecoins is less developed. Throughout its existence, PAX cost exactly 1 US dollar.
Paxos Standard is much like Tether and other stablecoins in use. Its main feature is the creation specifically for use on the Paxos platform, but cryptocurrency can also be used for exchange trading.
Paxos Development Forecasts
The project is quite young, so it has yet to gain the trust of the crypto community and investors. The fact that Paxos has been operating in the financial services market for more than 7 years has a positive effect on its reputation. An important feature of the blockchain platform is the regulation of activities by a legitimate financial institution. That is why many customers trust it. PAX is not the main client of Tether because they have different tasks.
Nevertheless, Binance president Changpen Zhao admits that stablecoin will take Tezer's place in the future. He did not back his opinion with any arguments. Perhaps such a statement is just a marketing ploy.
The Paxos project has great potential. Many cryptocurrencies are associated with great risks and instability. Stablecoin completely destroys such biases. Collaboration with regulators and audits increase customer confidence. If possible, use the services of a trust organization. PAX can be used when trading on the stock exchange, when in anticipation of a market collapse you need to use dollar and wait out the storm.
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