Paxos Renames Standard Stablecoin as Pax Dollar
24 Aug, 2021•1 min read•Altcoins
Blockchain infrastructure company Paxos is renaming its Paxos Standard stablecoin as Pax Dollar with the ticker USDP.
Paxos believes the USDP ticker more easily identifies the stablecoin as a U.S. dollar-backed token, head of strategy Walter Hessert said in a blog post Tuesday. "USDP reserves are held 100% in cash and cash equivalents ... This names makes it obvious to anyone – USDP is a dollar," Hessert wrote. Paxos asked its ecosystem partners to reflect the stablecoin's new branding ahead of the updated smart contract going live on Aug. 31. "USDP is an important step towards making regulated digital dollars ubiquitous," Hessert wrote. "Stablecoins have the ability to transform global payments and USDP is the regulated solution." The announcement follows shortly after Circle's confirmation that USDC, the second-largest stablecoin by market capitalization, will be 100% backed by cash and short-term U.S. Treasurys by September. There remains however some opacity around the composition of USDT provider Tether's reserves. A breakdown released in May revealed that some 49% of tokens USDT tokens were backed by unspecified commercial paper. USDT nonetheless remains by far the world's largest stablecoin, with a market capitalization of over $65 billon. Paxos Standard's is $944 million.