Paxos: digital gold and BUSD issuer
Paxos Trust Company, often referred to simply as Paxos, is a financial technology company that develops blockchain infrastructure and digital assets. It has offices in New York, London, and Singapore.
Paxos is the highest-funded blockchain company, with over $500M from top investors such as Oak HC/FT, Declaration Partners, Mithril Capital, and PayPal Ventures.
Paxos Trust Company partners (PAXOS.COM)
History of development
Paxos was founded by Charles Cascarilla and Rich Theo as the itBit crypto exchange in 2012. Three years later, the company changed its name to Paxos Trust Company to match its new focus on financial services based on blockchain technology. The platform became the first bitcoin exchange to be licensed by the New York State Department of Financial Services ("NYDFS"), allowing it to work with US customers. In 2019, Paxos became the first and only company to receive SEC clearance to pilot blockchain technology for equity settlement.
Introducing the first crypto products
Paxos Standard (PAX) / Pax Dollar (USDP)
In September 2018, the company introduced its first project to the world, the ERC-20 Paxos Standard (PAX) stablecoin pegged to the US dollar. PAX became the first government-regulated cryptocurrency. At the end of August 2021, Paxos Standard (PAX) was renamed Pax Dollar (USDP) to increase visibility amid rising demand for regulated stablecoins. USDP is under the strict control of the New York State Department of Financial Services and follows high standards of consumer protection. Cash and its equivalents are USDP reserves and are always available to reimburse clients.
Binance USD (BUSD)
In 2019, Paxos teamed up with Binance to launch the second stablecoin on the Ethereum blockchain, Binance USD, pegged to the US dollar. BUSD has been approved and regulated by the New York State Department of Financial Services (NYDFS). The coin is backed by reserves held in dollars in special omnibus accounts in US banks. In addition, Binance is issuing its own separate Binance-Peg BUSD tokens on multiple blockchains, including Binance Smart Chain, Polygon, and Avalanche. It is important to remember that BUSD and Binance-Peg BUSD are two different products. Binance-Peg USD (BUSD) is a fiat-backed regulated stablecoin, while Paxos-issued reserves and the BUSD token are subject to strict regulatory oversight by the NYDFS.
PAX Gold (PAXG)
In 2019, Paxos introduced PAX Gold (PAXG), an ERC-20 stablecoin pegged to gold. Each PAXG equals 1 troy ounce (31.1 grams) of gold. The gold backed by PAXG is stored in LBMA-certified vaults in London. PAXG has advantages over banking gold in the form of zero custody fees and high security secured by blockchain technology. PAXG holders can easily view information about their gold, including serial number, value, and physical characteristics, by entering their Ethereum wallet address into the PAXG search tool at paxos.com/paxgold.
Project uniqueness
Paxos is the first company to receive the necessary licenses from US regulators to integrate blockchain technology and fiat money. Paxos guarantees the reserves required to convert stablecoins into any volume, which makes them more reliable and resistant to market changes. Compared to Tether Limited and Circle, which are also stablecoin issuers, Paxos has stricter regulation and an emphasis on legal liability, giving investors and users even more confidence.
