Paxos Rebrands Its Slipping Stablecoin ‘Pax Dollar’
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Paxos Rebrands Its Slipping Stablecoin ‘Pax Dollar’

1 year ago

Having fallen into seventh place by market cap as newer stablecoin flourish, sub-$1 billion Paxos Standard’s name is making way for USDP.

Paxos Rebrands Its Slipping Stablecoin ‘Pax Dollar’

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The Paxos Standard stable coin has a new name and a new symbol: Pax Dollar, or USDP.

Now just the seventh-largest stablecoin, with a market capitalization of under $1 billion, Paxos’ stablecoin has fallen well behind newer brands. Most notably Binance USD, which has $12.3 billion BUSD coins in circulation, and Dai, which has $6 billion DAI in the market.

Stablecoins use several methods to ensure that the value of their coins remains as close to $1 at all times, most commonly by 

Paxos launched the Paxos Standard stablecoin, known by the exchange symbol PAX, in September 2018. It’s market cap as of August 24 is $944 million.
“As USDP, everyone will be able to instantly recognize our token as a dollar-backed stablecoin,” Paxos Head of Strategy Walter Hessert said in an August 24 announcement. “This name makes it obvious to anyone – USDP is a dollar. And Paxos is committed to ensuring USDP always equals a dollar.” [Paxos’ emphasis]
That emphasis comes a day after Coinbase president and COO Emilie Choi announced that USDC would return to an all-cash or cash equivalent reserve backing its stablecoin. 

The July USDC monthly attestation report detailing the make-up of the holdings backing its $1 peg, caused some shock and dismay when it revealed that COinbase and Circle had moved 31% of the assets to slightly higher return but also higher-risk investments without any notice.

USDC will revert to a 100% cash and cash equivilent reserve by the end of September, Choi said.

Like USD Coin, Pax Dollar is regulated by the New York Department of Financial Services. Both hold a BitLicense, the regulatory gold standard. Paxos also received a national bank charter from the Office of the Comptroller of the Currency in April, giving it national oversight as well. 
Notably, PayPal is running all of its considerable cryptocurrency transaction business through the Paxos Exchange.

Slipping Behind

Tether is by far the oldest and largest stablecoin, dating to early 2015 and currently holding a $65 billion market cap, according to CoinMarketCap. The USD Coin stablecoin launched by Circle and Coinbase roughly a month after Paxos is second, with just shy of $27 billion worth in the market.
But No. 3 stablecoin BUSD launched in September 2020, and No. 4 DAI in November 2019. No. 5 TerraUSD (UST) went live in November 2020 — less than one year ago — and already has a $2.3 billion market cap.
Only No. 6 stablecoin TrueUSD, or TUSD, is older, having launched in March 2018. It has a $1.4 billion market cap.
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