Paxos Issues Dollar-Pegged Coin after NY State Regulatory Approval
Cryptovest
Published Sep 11, 2018 07:18AM ET
Updated Sep 11, 2018 08:20AM ET
Paxos Issues Dollar-Pegged Coin after NY State Regulatory Approval
US-based Paxos, the owner of the itBit crypto exchange, said on Monday it had launched a new stablecoin after securing approval from the New York Department of Financial Services (NYDFS). Dubbed Paxos Standard (PAX), the coin is pegged to the US dollar and uses the Ethereum ERC20 protocol.
NYDFS gave PAX the green light on Monday, and the coin was released on the same day. The new cryptocurrency aims to offer a digital alternative to fiat money as it is available at any time, Paxos said in a statement. The dollars backing PAX are held in a US bank that has the Federal Deposit Insurance Corporation (FDIC) pass, the company added without disclosing the name of the financial institution.
“When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody,” the company explained.
Clients of itBit and its over-the-counter (OTC) service can automatically withdraw their crypto assets in PAX. ...
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