Stablecoins & Payments

Paxos issues several regulated stablecoins, including Pax Dollar (USDP), Pax Gold (PAXG), and PayPal USD (PYUSD), all backed 1:1 by reserves in cash and US Treasuries, ensuring they can be redeemed at face value. The New York State Department of Financial Services (NYDFS) verified that these stablecoins offer stringent consumer protection and transparency. Paxos also integrates its stablecoins into various payment systems, notably partnering with Mastercard to streamline cross-border payments by converting stablecoins to US dollars, thereby reducing settlement times and costs while enhancing security.

Use in DeFi and Beyond

Stablecoins play an important role in DeFi as they provide liquidity and a stable store of value and facilitate lending and borrowing. Paxos’ stablecoins are particularly beneficial in DeFi ecosystems due to their regulatory backing, which ensures stability and trust. They help enhance liquidity on DeFi platforms, provide a predictable medium for loans, and enable automated smart contract executions.

Regulatory Commitment

Paxos emphasizes regulatory compliance to maintain trust and security in its stablecoin offerings. It operates under a trust charter from the NYDFS, distinguishing it from other issuers who may only have money transmitter licenses. This regulatory approach ensures that customer funds are segregated and protected against potential insolvency issues, providing a higher level of consumer safety.