More than five years have passed since crypto currencies became known as crypto assets in Japan, and crypto currencies are now called “stable coins,” meaning that their value is linked to that of the real currency.
Among such stable coins, have you ever heard of the “Pax Dollar,” which is highly reliable and is used for actual transactions?
This stable coin is issued by Paxos, a U.S. company, and although its price temporarily declined, it has maintained a stable price.
This time, we will explain in detail about the Pax Dollar, which is currently the focus of attention, to beginners of crypto currency.
I want to know more about Pax Dollar.
What is a stablecoin?
The content of this seminar is designed to answer such questions as “I want to know about Pax Dollar” and “What is a stablecoin?
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What is a stable coin?
Before explaining Pax Dollar, we should first mention a little about the most important feature of USDP, the stable coin. It is difficult to understand the greatness of Pax Dollar if you do not understand this part, so let us briefly introduce it.
A stablecoin is a crypto currency whose value is linked to a legal tender. For example, in the case of USDT (Tether), a stablecoin pegged (pegged) to the US dollar, 1 USDT is 1 dollar. For example, 1 USDT is 1 dollar and 1 JPYC is 1 yen in the case of JPYC, a stable coin pegged to the Japanese yen.
Stable coins have the advantage that they can be handled in the same way as legal tender, and in some transactions, they are used in the same way as legal tender.
Stablecoins can be classified into two types depending on the asset that collateralizes their value
- Legal tender-backed
- crypto Currency-Backed
- Unsecured
and unsecured, depending on the asset that guarantees the value. Therefore, if any trouble occurs to the collateral asset, the stablecoin loses its value as a stablecoin and its linkage with legal tender stops.
Although stablecoins are stable in price and can replace legal tender, they cannot replace legal tender in terms of compensation for value.
What kind of crypto currency is Pax Dollar (USDP)?
| Name | Pax Doller |
| Token Symbol | USDP |
| Market capitalization | $877,364,922 (2023/3/20) |
| Official page | https://paxos.com/usdp/ |
| https://twitter.com/paxosglobal | |
| https://www.facebook.com/PaxosGlobal/ | |
| Linked in | https://www.linkedin.com/company/paxos/ |
Pax Dollar is a crypto currency developed by Paxos, an American company developing blockchain infrastructure.
This crypto currency was developed by Paxos based on the concept of a stable coin that can be used safely in anticipation of the future spread of decentralized finance (DeFi). Therefore, although USDP is a crypto currency, it is managed and regulated by the New York State Department of Financial Services and is extremely reliable and has a large number of users.
Unfortunately, the previous collaboration between Binance’s stable coin “BUSD” and Pax Dollar has been terminated, making it difficult for USDP to spread at the same speed as before. However, USDP, the most reliable of all stable coins, has the potential to become synonymous with stable coins in the future.
About the company Paxos
Paxos, as mentioned above, is a company that builds blockchain infrastructure. In particular, the company’s main focus is on building decentralized financial platforms and
- crypto assets
- securities
- precious metals
The above-mentioned transaction and settlement platforms are configured on the blockchain. These decentralized platforms help reduce transaction costs, and there is no cost to use the settlement services.
Paxos’ technological capabilities have had a significant impact on the blockchain infrastructure industry, including cooperation with PayPal, a major payment service provider in the area of crypto asset transactions, and more and more companies are paying attention to Paxos’ technology.
However, while these platforms are very beneficial, they are not yet available for person-to-person use. Since they are more of a business platform, it may be sometime soon that the Paxos platform will be introduced to the companies that use it all the time.
Features of Pax Doller (USDP)
Feature 1: Very reliable stable coin
Pax Dollar is unique in that the USDP is extremely reliable. As explained at the beginning, the trustworthiness of a stablecoin is affected by the asset that collateralizes the value of its tokens.
Pax Dollar is a legal tender-backed stablecoin pegged to the US dollar. The token’s value is guaranteed in the safest legal tender, the U.S. dollar, and is designed to be resistant to sudden price fluctuations.
Pax Dollar is no different.
Pax Doller’s issuer, Paxos’ stablecoin reserve portfolio (the breakdown of the assets backing the value of the stablecoins) consists of cash and three equivalent assets in accordance with US GAAP.
In other words, the assets are “generally collateralized only by instruments of value. This is what makes Pax Dollar a more reliable stablecoin than crypto currency-backed or unsecured stablecoins.
Feature 2: It is also a highly transparent stable coin
Pax Dollar is not only a secure stablecoin, but also a transparent stablecoin. Since stablecoin is an “asset”, it is important to have trust and transparency to back it up.
In fact, the official Paxos page reveals the contents of Pax Doller’s stablecoin reserve portfolio. Not many stocks claim this level of transparency for stablecoins.
There are many unreliable stablecoins, such as unsecured issues or issues that are secured but of dubious asset value, when viewed as a whole.
In such a situation, Pax Dollar, which claims transparency and takes safety into consideration, is a very distinctive stablecoin.
If you are interested in the report of Pax Doller’s stablecoin reserve portfolio, select “Products” on the official page. “View Reports”.
Feature 3: Assets are preserved even if Paxos goes bankrupt.
With a Pax Dollar, all assets are guaranteed even if the issuer, Paxos, goes bankrupt and no longer collateralizes the value.
This is the main advantage of using a Pax Dollar. Stable coins generally lose value when the company or entity that issued them can no longer guarantee their value. A recent example would be the famous news of the Terra USD crash.
TerraUSD, an unsecured stablecoin, did not have assets to protect its value, but had an algorithm to guarantee its value.
As soon as the algorithm stopped working, TerraUSD, whose value was fixed at $1, dropped to about 10 cents. The money lost at this time was never recovered, and many investors lost money.
This incident did not happen because it was an unsecured stablecoin; the same is true for a collateralized stablecoin when the collateral asset loses value.
When this happens, Pax Dollar is designed to compensate for this loss and protect its users. This feature, which is not found in other stablecoins, is truly a mechanism designed to make stablecoins function as infrastructure.
Pax Doller (USDP) Price Trends
Pax Dollar is a stable coin. Basically, the price is held around $1.00 and is not far off.
Is USDP a good investment?
USDP is not a good investment as it is a very stable coin. However, if the recent trend of dollar appreciation is expected to continue, USDP, whose value is linked to the U.S. dollar, can also be profitable.
However, there is no need to go out of your way to buy stablecoins in anticipation of a stronger dollar, so USDP is still not a good investment.
How to Buy USDP
USDP can currently be purchased from the Paxos platform by logging onto the official page. Please note that it is not available on Binance.
You can also purchase from “Coinbase” outside of the Paxos platform. The purchase procedure is as follows
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- STEP.01Purchase
- Purchase ETH from bitcastle using a credit card.
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- STEP.02Remittance
- Transfer the ETH purchased from bitcastle to Coinbase
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- STEP.03Purchase
- Purchase USDP with ETH
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- STEP.04Confirmation
- Confirm that USDP has been reflected.
Why buy ETH on bitcastle?
When purchasing ETH on bitcastle, you can actually use a credit card. This is very convenient because there is no need to bother with bank transfers.
You can open a bitcastle account quickly and easily with just an email address.
If you do not have a bitcastle account, you can create one immediately for free, so why not take this opportunity to register?
Prospects for Pax Doller (USDP)
The future of Pax Dollar is very promising. There are three reasons for this
- It is a stable coin.
- Paxos, the issuer of the Pax Dollar, is attracting attention for its infrastructure construction.
- Because the use of stablecoins is expanding.
Let’s look at them in order.
Reason 1: Because it is a stable coin.
As mentioned in the features of Pax Dollar, the stability of this stablecoin is outstanding compared to other stablecoins. Although it is not as stable as Binance USD (BUSD) or Tether (USDT) at this time, it should eventually grow to a level of prominence that will put it on par with these other stablecoins.
Reason 2: Paxos, the issuer of the Pax Dollar, is attracting attention for its infrastructure construction.
The trading platform that Paxos has built has attracted the attention of many companies. Paxos’ crypto asset trading platform “itBit”, which is designed for investors, has obtained SOC2 Type2 certification, which is a third-party service control assurance standard.
This is a rating of high reliability and airtightness that can only be given to a reliable platform.
Pax Dollar is a stablecoin issued by Paxos, which operates such a system. Perhaps the range of use cases will be even wider in the future. There is no need to acquire it in an investment sense, but it may be a good idea to hold it if you are considering using itBit.
Reason 3: The range of use of stablecoin is expanding.
The range of use of stablecoin is expanding every year. For example, Amazon’s proxy purchase service using the Japanese yen stable coin Y-TORA (Entra) has started (service is currently suspended), and it can be used to pay for NFT purchases, and so on, in both virtual and real life situations.
Until now, stable coins have been used for “obtaining and using services when necessary,” but Pax Dollar, with its guaranteed asset value, may become a crypto currency that “I’m going to need, so I’ll hold on to it. Pax Dollar may become a crypto currency that “I’m going to need it, so I’ll hold it.
Of course, since it is a stable coin, it does not have the property of increasing in value as the number of holders increases, but the Pax Dollar is very useful as a destination for asset division.
It is a stable coin with such a promising future that there is a possibility that some users will “always hold a certain amount of Pax Dollar.
In summary, Pax Dollar is a reliable stablecoin.
Now that you know how reliable Pax Dollar is, we hope that you have gained an understanding of how reliable a stable coin Pax Dollar is.
The Pax Dollar is the opposite of the high-risk, high-return investment that is the allure of crypto currencies, making it a practical and valuable crypto currency.
While it certainly does not have the investment appeal or return, the Pax Dollar has the potential to be a crypto currency that changes the face of stable coins.
There is no advantage or advantage to holding it now, but it may be worth remembering as a stablecoin that may become famous in the future.