Everyone on board the Stablecoin Crypto Train!
As reported by Ethereum World News on September 10, the Winklevoss Twins, well known for their entrepreneurial mindset and affection for the crypt, revealed that they would launch a token-based Ethereum- supported by US dollars.
The token, nicknamed "Gemini Dollar" by the two, will be a stablecoin focused on the USD which will be insured by the FDIC by the legacy market giant State Street. Many have seen it as fairly bullish news, as the New York Department of Financial Services (NYDFS) has put its "approval stamp" on the Gemini Dollar plan, but surprisingly, the market has not moved a bit .
A At the same time, it appears that Paxos, a less known blockchain startup, has also obtained regulatory approval for a similar stablecoin product, as revealed in a tweet (seen below) from the company that was published during early Monday morning.  Excited to announce that today we launched the Paxos Standard Token (PAX), the world's first token issued directly by a regulated trust company. PAX is fully collateralized 1: 1 with USD in reserve bank accounts. Find out more here! https://t.co/aaYQThF4oW pic.twitter.com/d7wKxBM8Os
– Paxos (@PaxosGlobal) 10 September 2018
Paxos has therefore released a press release on the topic, highlighting the token and aspirations of the company for the product. Paxos Standard, as the startup called it, is apparently the "first cryptographic asset in the world", as these tokens are issued by the Paxos Controlled Trust and are approved and supervised by the NYDFS, the aforementioned government agency. In a commentary on his qualifications for the stablecoin project, Paxos wrote:
As a fiduciary company, Paxos is a trustee and depositary of client funds and can therefore offer greater protection for customer resources than any other existing stablecoin. Dollar deposits are always held in segregated accounts with multiple FDIC-backed US-based banks.
As mentioned in the aforementioned statement, Standard Paxos is fully collateralized for USD reserves, allowing users to obtain "a liquid and digital cash alternative available 24 hours a day, 7 days a week, for payment Instant transaction. "
The executive team of the company also expressed its enthusiasm for the project, with Charles Cascarilla, CEO and co-founder, who stated that this new product will have an incredible influence on financial markets, allowing companies and investors to "trade in a fully guaranteed USD asset with the benefits of blockchain technology and the supervision of financial regulators."
Cascarilla added that the Paxos standard should be seen as a "significant progress in digital resources", as this product will combine the best of the traditional financial system and an "obaline economy".
Now, more on the details of this new stablecoin.
According to the press release above, "verified" Paxos customers will be able to purchase and redeem the Standard tokens directly on the company's website at a 1: 1 ratio with US dollar availability. The amount of Paxos Standard in circulation is the amount of USD held in reserve accounts, so once users redeem their stablecoin for dollars, standard tokens will be destroyed on the spot.
In an unexpected move, it has been added that traders use the ItBit or OTC exchange will be able to exchange their cryptocurrencies for the "Paxos" standard tokens "instantly". But these stablecoins will not be limited to this less well-known exchange, since it has also been noted that Paxos Standard can be listed on other "locations" under the ticker symbol "PAX."
The release, the aforementioned CEO and founder of the company wrote:
In the current market, the biggest obstacles to the adoption of digital resources are trust and volatility. As a Trust regulated with a stablecoin 1: 1 dollar -collateralized, we believe we offer an advantage that improves the usefulness of money.
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