Paxos Standard (PAX) Stablecoin Review
- Financial Institutions
Paxos Standard (PAX) is a stablecoin pegged to the US Dollar. Issued by the Paxos Trust Company, PAX is fully backed 1:1 to the USD. All client funds are audited, regulated, and held in segregated FDIC insured bank accounts.
Paxos Standard Stablecoin - 2020 Comprehensive Review
Paxos Standard Stablecoin Overview
|Exchanges||Binance, Kucoin, Bittrex Global, Bitfinex, Gate.io, OKEx, Bitmax, Huobi Global, KyberSwap, Uniswap, HitBTC|
|Hardware Wallets||Ledger, Trezor|
Paxos Standard (PAX) Exchanges
Paxos Standard (PAX) Wallets
|Ledger Nano M||7/10||Mobile Application||$96.00|
Paxos Standard Borrow Rates
|Platform||APR Rate||Collateral LTV||Loan Amounts|
|Celsius Network||3.46% - 6.26%||25% - 50%||$1,500 - $1,000,000|
|Crypto.com||8%||50% - 65%||$1,000 - $100,000|
Paxos Standard Interest Rates
|Platform||APY Rate||Lockup Terms||Deposit Amounts|
|Celsius Network||11.55%||Flexible||$1 - $100,000|
|Crypto.com||6% - 10%||3 Months||$25 - $1,000,000|
|Nexo||10%||Flexible||$1 - $2,000,000|
Paxos Standard Stablecoin Alternatives
Pros and Cons
- ERC20 - PAX is issued entirely on the Ethereum blockchain. This enables easy personal wallet storage for users, transparency, and fast transaction speeds.
- Liquidity - PAX is listed on several major exchanges including Binance.
- Monthly Audits - Audits are performed monthly by the Withum accounting firm to ensure that PAX is fully collateralized at 1:1 by US dollars. These reports are then published on the Paxos Trust Company website for public viewing.
- Regulated & Compliant - Paxos Trust Company, LLC is regulated by the NYDFS (New York State Department Of Financial Services).
- Insured Customer Funds - Customer balances are held in segregated FDIC insured bank accounts located within the US.
- Centralized - PAX can be frozen, confiscated, or censored by authorities in the event that they believe any illegal activity has occurred or terms and conditions have been broken.
- Privacy - Trading PAX in large amounts on cryptocurrency exchanges will require KYC. In addition to this, any user looking to purchase or redeem PAX with fiat will be required to undergo KYC and submit personal identification documents.
Frequently Asked Questions
What is Paxos Standard Token (PAX)?
PAX is a regulated stablecoin issued by Paxos Trust Company, LLC. PAX is legally compliant, audited monthly, and fully backed 1:1 in US Dollars. PAX is an ERC20 token supported natively on the Ethereum blockchain.
Is PAX safe?
PAX is one of the safest stablecoins available with public monthly asset audits, segregated customer balances, and a legally compliant issuing company.
Is PAX an ERC20 token?
Yes. PAX is only supported on the Ethereum blockchain. The contract address can be found here.
What is PAX used for?
PAX has a variety of use cases including trading, earning interest, and serving as a stable store of value in the volatile crypto asset markets.
Where can I buy PAX?
PAX can be purchased with fiat directly through the Paxos Trust Company, LLC website. Users looking to purchase PAX with cryptocurrency have a variety of options, most notably listed above in our ‘PAX Exchanges’ information table.
PAX is a growing force in the stablecoin market trailing only Tether (USDT) and USD Coin (USDC) in market cap and trading volume. Liquidity is improving and Paxos Trust Company, LLC has done everything they can to appease financial regulators.
Paxos as a company has continued to innovate and forge partnerships in the space since its stablecoin launch in 2018. Binance (BUSD) and Huobi (HUSD) have selected Paxos to provide stablecoin infrastructure for their respective stablecoins. Paxos has also recently launched Pax Gold (PAXG) - a tradeable digital asset fully backed by gold.
Blockfer has rated PAX highly as an excellent option for both retail and institutional traders and investors. Strong leadership, full regulatory compliance, and innovative product rollouts have all contributed to the stablecoins success.
|Learn More||Best Features|
Paxos Standard Official Website
Legal & Regulation - Facts & Figures
|Legal Name||Paxos Technology Solutions, LLC|
|Incorporated Country||United States|
|Headquarters||New York, NY|
|Regulators||New York State Department of Financial Services (NYDFS)|
|Links||Website, Crunchbase, Whitepaper, Source code, Twitter, Blog, LinkedIn|
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Methodology: How We Review And Compare
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The stablecoins found in this category have been researched extensively by our team as part of the review process. Factors we analyze in our stablecoin reviews and comparisons include: trading volume, listings, purchase and redemption process, issuer trust, collateral type, borrow rates, interest rates, and wallet compatibility.
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