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Michael Nagle / Bloomberg
A new stablecoin collateralised in US dollars has been praised by the strictest regulatory regime in the crypt.
The New York Department of Financial Services, creators of the controversial BitLicense regulatory framework, has highlighted the standard Paxos currency on Monday and will regulate its assets.
Developed by Paxos, the Ethereum-based stablecoin is designed to function as a liquid alternative to money that can be used for instant settlement in global financial transactions while offering decentralized immutability and accounting capacity.
An ERC-20 token, Paxos Standard will be issued by Paxos Trust Company and will be fully collateralized with a one-to-one dollar ratio The Paxos Trust was hired in New York and serves as a trustee and depositary of customer funds.
at the time an account has been opened, entered and & nbsp; a bank transfer of dollars has been received, Paxos tokens are coined and can therefore be used as a means of payment in financial transactions rather than dollars. The tokens are burned at the time of redemption, ensuring that all tokens in circulation have matching dollars in custody. & Nbsp;
Dollar deposits converted into tokens will be held in US banks subject to supervision and regulation by the Federal Deposit Insurance Corporation, providing insurance and protection not available to other stablecoin currently on the market.
"The Paxos standard offers financial markets the power to trade in a fully dollar-backed business with the benefits of blockchain technology and the supervision of financial regulators," said Charles Cascarilla, CEO and co-founder of Paxos, adding :
"We believe that the Paxos standard represents significant progress in digital resources, leveraging the oversight and stability of the traditional financial system and enabling a friction-free global economy."
Cascarilla further emphasized Forbes that dollar deposits as the token would be accepted by four separate banking partners domiciled in the United States, and that the token would be regularly reviewed by a principal auditor, although he has refused to specifically identify the banks and auditors with whom Paxos will work.
"In today's market, the biggest obstacles to the adoption of digital resources are trust and volatility," he added.
"As a regulated trust with a stablecoin collateralised in one-to-one dollars, we believe we offer an advantage that improves the usefulness of money."
The NYDFS also approved a similar stablecoin developed by Tyler and Cameron Winklevoss.
The currency, exchanged as PAXTM, will be immediately available for use on itBit, the Paxos encryption exchange and the digital goods custody service. It will also be available for listing on further exchanges.
The company was originally founded in 2012 as Bit, but was later renamed to Paxos to focus more on blockchain services, in particular the digitization of resources to allow for frictionless transactions and reduction of settlement risk.
Paxos has since accumulated a legacy of legacy financial experience in its orbit. Her board of directors now includes Sheila Bair, who was president of the Federal Deposit Insurance Corporation during the 2008 financial crisis; the former US Senator Bill Bradley; Robert Herz, former president of the Financial Accounting Standards Board and Duncan Niederauer – former manager of Intercontinental Exchange and NYSE / Euronext. & nbsp;
In May, Paxos announced that it had raised $ 65 million from investors & nbsp; including Liberty City and RRE Ventures.
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A new collateralised stablecoin in the United States has been praised by the most stringent cryptic regulatory regime.
The Department of Financial Services in New York, creators of the controversial BitLicense regulatory framework, has highlighted the standard currency Paxos on Monday and will regulate its assets.
Developed by Paxos, the Ethereum-based stablecoin is designed to function as a liquid cash alternative that can be used for instant settlement in global financial transactions while offering unchanging and decentralized accounting capabilities.
An ERC-20 token, Paxos Standard will be issued by the Paxos Trust Company and will be fully collateralized with a one-to-one dollar ratio. The Paxos Trust was established in New York and serves as a trustee and qualified custodian of client funds.
Once an account has been opened, onboarded and a dollar bank transfer has been received, the Paxos tokens are coined and can therefore be used as a means of payment in financial transactions rather than dollars. The tokens are burned at the time of redemption, ensuring that all tokens in circulation have matching dollars in custody.
Dollar deposits converted into tokens will be held in US banks subject to supervision and regulation by the Federal Deposit Insurance Corporation, which provide insurances and protections not available to other stablecoin currently on the market.
"The Paxos standard gives financial markets the power to transact in assets wholly guaranteed by the US with the benefits of blockchain technology and the supervision of financial regulators," said Charles Cascarilla, CEO and co-founder by Paxos, adding:
"We believe that the Paxos standard represents significant progress in digital resources, leveraging the oversight and stability of the traditional financial system and enabling a friction-free global economy."
Cascarilla further emphasized Forbes that dollar deposits for the token would be accepted by four separate banking partners domiciled in the United States, and that the token would be regularly reviewed by a principal auditor, although has refused to specifically identify the banks and auditors with whom Paxos will work.
current market, the greatest obstacles to the adoption of digital resources are trust and volatility, "he added.
" As a regulated trust with a one-to-one dolla we believe we are offering an advantage which improves the usefulness of money. "
The NYDFS also approved on Monday a similar stablecoin developed by Tyler and Cameron Winklevoss
The currency, exchanged as PAXTM, will be immediately available for use on itBit, the encryption exchange of Paxos and the custody service of digital goods will also be available for listing on further exchanges
The company was originally founded in 2012 as a Bit, but later renamed Paxos to focus more on blockchain services, in particular the digitalisation of resources to allow for frictionless transactions and reduction of liquidation risk
Paxos has since accumulated a legacy of legacy financial experience in its orbit and its board now includes Sheila Bair, who was president of the Federal Deposit Insurance Corporation during the 2008 financial crisis, the former US Senator B ill Bradley; Robert Herz, former president of the Financial Accounting Standards Board and Duncan Niederauer – former manager of Intercontinental Exchange and NYSE / Euronext.
In May, Paxos announced that it had raised $ 65 million from investors, including Liberty City and RRE Ventures.
