Paxos renames its own Standard stablecoin (PAX) to Pax Dollar (USDP)
Blockchain infrastructure company Paxos is renaming its Paxos Standard stablecoin to Pax Dollar with the ticker USDP. PAX tokens are pegged to the US dollar at a 1:1 ratio and are regulated by the New York State Financial Services Authority. USDP’s updated smart contract will be launched on 31st August.
USDP is a dollar
Paxos Standard stablecoin is an ERC20 token that is fully backed by US dollars. The specific feature of PAX is that new tokens can only be created if an equal amount of dollars is deposited into a regulated bank account. If a user decides to redeem his PAX for dollars, the tokens are sent to the company to be burned.
According to the company’s head Walter Hessert, renaming and adding a USDP ticker makes it easier to identify the stablecoin as a dollar-backed token. “USDP is an important step towards making regulated digital dollars ubiquitous,” said Hessert. “Stablecoins have the ability to transform global payments and USDP is the regulated solution.” Paxos has asked its ecosystem partners to reflect the new ticker before the updated smart contract is launched on 31st August 2021.
The announcement comes shortly after Circle confirmed that USDC will only be backed by cash and US treasury bills. The company is also vying for attention in the highly competitive stablecoin market, which is dominated by Tether and USDC.
Another active contender for leadership has emerged in the stablecoin market. With a new ticker, USDP will be more recognisable and easily identifiable. Let’s see how the market reacts to this name change.
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