Pax Dollar (USDP) Price Today

What is Pax Dollar?

Pax Dollar (USDP) is a stablecoin backed by New-York based blockchain company, stablecoin issuer, and decentralized finance (DeFi) developer, Paxos. USDP allows users to store and send US dollars quickly and cheaply. This can be done by anyone using a simple mobile phone and does not require a bank account.

Paxos itself is regulated by the New York State Department of Financial Services and has been audited by Withium on a monthly basis.  The audit makes sure that its supply matches its reserve account comprised of US dollar and debt instruments. Each USDP token is backed with $1 on a 1:1 basis.

As a fully regulated blockchain ecosystem, Paxos functions like an umbrella platform which hosts both Pax Dollar and Pax Gold tokens. The main aim of this project is to ensure seamless global payments that minimise risks associated with market exposure.

Pax Dollar Price Trends

Since it’s a stablecoin which is backed by the US dollar on a 1:1 basis, Pax Dollar, theoretically, should not deviate from $1. However, Paxos Dollar’s price increased to a high of $1.52 in May 2021. This was a result of the rumours surrounding PayPal’s release of its own stablecoin with several partners including Paxos.

USDP’s price has increased and decreased on several occasions since then. USDP price (USD) was $1.01 in September 2021 after going down to 99 cents in October 2021. At the time of writing, the price of Paxos Dollar is $0.9967, which represents a change of -0.07% this year.

How does Paxos Dollar Work?

The USDP stablecoin runs on the Ethereum blockchain using the ERC-20 token standard. As a result, the USDP price benefits from any upgrades that Ethereum puts out. Paxos Dollar allows anyone, anywhere to send and receive U.S. dollar bed assets in a better fashion than traditional financial sector instruments. It also charges less fees for buying, selling and trading USDP.

With Pax Dollar, users can seamlessly transfer assets across borders with absolutely zero discriminatory requirements, almost instantly. By leveraging blockchain technology, Paxos helps people break free from the shackles of financial bondage.

To start using the Pax Dollar, the first thing that the user has to do is exchange USD for USDP. They need to deposit USD into a Paxos account, whether for transactional or investment purposes. Paxos then uses its smart contract to generate the equivalent amount of USDP and sends it to the user’s account.

The process of converting USDP to USD is the same and just as simple. The only difference is that PAX coins are instantly burnt and removed from circulation. The minimum conversion amount is 100 USD without any fees charged. Paxos stores all the stablecoin cash equivalents and reserves in regulated accounts. They can be redeemed for U.S. dollars at any time.

Pax Dollar is inherently more secure than other stablecoins as Paxos is a regulated trust. This means that transactions are quick, secure and come with no risk. Paxos has legal permission to transfer assets using blockchain technology. It also has the permission to conduct additional transaction monitoring and use surveillance partners to increase compliance.

Paxos also follows OpenZepellin’s Pausable contract module. This helps in minimizing risk by using tested libraries of Ethereum smart contracts. The Paxos platform can pause USDP approvals or transfers if it detects a security threat.

Pax Dollar Key Events

The following are some of the key events that occurred since Pax Dollar came into existence.

• Paxos Trust Company was founded in 2012 by Charles Cascarilla and Rich Teo.
• Paxos Trust Company raised $3.3 million on November 11^th, 2013 during the initial seed round.
• Paxos received licensure from the New York State Department of Financial Services in May 2015.
• In September 2018, Paxos launched Pax Dollar. Its technology has pegged it with the U.S. dollar in accounts held at depository institutions.
• Paxos rebranded Pax Dollar to the USDP stablecoin in August 2021.
• USDP price reached its all-time high price of $1.745520 on October 1^st, 2022.
• Pax Dollar value reached an all-time low of $0.6014 on December 11^th, 2022.

Paxos Dollar Mining

As a stablecoin, Pax Dollar does not support mining as Bitcoin or Ethereum does. After the staking equivalent amount of USD onto Paxos, the coins exist.