Cryptocurrency marked the rise of decentralized assets. But in the cryptocurrency world, as Novi launched in the US and Guatemala, you will ask What is Paxos dollar or USDP? As you can only use Novi with Paxos dollar for now.
Apart from Novi, you can also invest in USDP. A collateralized stablecoin, created by Charles Cascarilla and Rich Teo for stabilizing the U.S dollar with the help of blockchain technology.
Furthermore, Pax Dollar creates a frictionless network worldwide to enhance the bigger financial ecosystem. Its main goal is to build a future in which you can transfer your digital assets, commodities, and securities anywhere at any time, along with high levels of accessibility and flexibility.
Table of Contents
- What are Stablecoins?
- What is Paxos dollar?
- History of Paxos dollar:
- Benefits of USDP crypto over other cryptocurrencies
- Drawbacks of Pax dollar
- Is the PAX dollar network secured?
- Where is the PAX dollar available?
What are Stablecoins?
Since crypto could not approach their consumer’s concerns, it demanded a mechanism to maintain a moral norm of crypto value that should be fixed.
So experts introduced stablecoins to fix the price of cryptocurrencies and minimize their volatility. As a result, the prices of cryptocurrencies were set to other financial resources like gold and the U.S. dollar.
What is Paxos Dollar?
Paxos dollar is the world’s leading regulated stablecoin, as per Paxos Trust. It is a flat-collateralized blockchain cryptocurrency that was suggested to provide border-free transactions with extremely little volatility rates.
Moreover, Paxos dollar or USDP crypto is an ERC-20 token set up on the Ethereum blockchain technology. According to Ethereum, Paxos is the world’s best programmable cryptocurrency that aids you in sending it to anyone by demanding a modest commission.
History of Paxos Dollar
The history of Paxos Dollar began in September 2018 when the New York-based company Paxos Trust, specializing in blockchain technology, introduced a new stablecoin called the Pax Dollar. It was brought in to meet a reliable substitute for blockchain assets.
Moreover, Paxos was founded in 2012 as the itBit, a Bitcoin exchange. Later on, the company renamed itself Paxos Trust in 2015. During the same period, New York’s Financial Services Department gave it a trusted charter for offering its services and products in the digital asset world.
Benefits of USDP Crypto over other Cryptocurrencies
As Paxos dollar was constructed on an ERC-20 token, it can be deposited in an ERC-20 wallet, and but they are also part of the pilot program for Novi wallet partnering with Coinbase.
Additionally, there are multiple advantages of the Paxos dollar over other cryptocurrencies. Out of those, here are the few major ones:
- Paxos stablecoin can only remain in circulation as long as US dollars are held in reserve.
- The Ethereum technology stores data in inter-chained blocks; it eliminates the chances of any intervention by the third parties and delivers a much more environmentally safe atmosphere.
- With decentralized computing and a 24 hours support program, PAX dollar gained better recognition.
- The New York State department monitors this stablecoin indicating a powerful trust boost to the PAX dollar stablecoin over other crypto coins.
- Paxos deals its transactions for 1:1 USD dollars. It means that 1 Paxos equals approximately 1 dollar, conferring to the Paxos company.
- The Paxos dollar also guarantees 100% cash reserves.
- PAX is a global digital resource, which means it can carry out local and international transactions.
Drawbacks of Paxos dollar
Alongside the great benefits, Pax dollars also comes with some drawbacks worth considering.
- Pax dollar is not available on all exchanges.
- It is downplayed by the competitor’s stablecoins.
- Pax dollar may not favor in value.
Is the PAX dollar network secured?
Yes, the USDP crypto is a much safer trading option. Once redeemed from your PAX account, the coins are automatically wiped out.
Also, using the PAX dollar allows for much better and secure transactions. If the PAX smells any security threat, it pauses the transactions and saves your currency.
In addition to that, Paxos is the first crypto company ever to secure the SOC 2 Type 2 certification. Thus, supporting its enterprising customers effectively.
Where is the PAX dollar available?
USDP crypto can be bought at the following exchanges:
- Binance1-inch exchange
- Bit thumb global
- VCC exchange
USDP crypto is currently one of the most popular crypto stablecoins today. It is the medium to produce low volatility exchanges without worrying about the market variations.
The original strength of the PAX dollar over other cryptocurrencies lies in its full backing of USD. This sole benefit is sufficient to wrestle with other popular cryptocurrencies.