Paxos Standard (PAX) Stablecoin Exceeds $5B Trading in Three Months
The young stablecoin is making the rounds as it starts grabbing market share from its competition.
Tether (USDT), the single most traded stablecoin pegged to the USD, is now facing competition as Bitcoin’s price gets ever more volatile. New stablecoins have appeared and made their mark over the last few months, nibbling away at its market cap.
One of these coins, known as the Paxos Standard (PAX) token, flew to new heights in the last three months, reaching a total of $5 billion in its trading volume over that period and accumulating $157,058,532 along the way in market capitalization at press time, according to a press statement that Cryptovest received via email.
Pegged to the US dollar just like Tether, PAX managed to gather almost 10% of the current USDT market cap.
According to statements from the developer, $136 million in PAX have been redeemed over the period in which it’s been traded.
“We have seen tremendous adoption around the globe as people increasingly value and understand our unique position as a regulated stablecoin. Paxos Standard now has the liquidity of crypto assets while matching the dollar in value. We aim to continue to offer the most reliable, transparent, and redeemable stablecoin and support frictionless commerce worldwide,” said Paxos CEO Chad Cascarilla.
Paxos ensures its supply of dollars comes from an FDIC-insured bank account it owns, having so far provided attestation reports monthly since September 28th.
Its rapid climb may have been helped by PAX’s listing in the top 20 exchanges and OTC desks in October, making it one of the most rapidly-adopted stablecoins available.
Paxos’ attestations come from Withum, a business-to-business financial auditing services firm that opened its doors in 1974 and works with companies from a variety of industries.
It’s worth noting that attestations differ from audits, the latter of which is a completely independent opinion from a firm on whether the numbers and accounts provided by the auditee conform to financial reporting frameworks.
The fact that Paxos publishes attestations isn’t something that singles it out; TrueUSD and Tether do the same. Tether relies on Cohen & Cohen while TrueUSD (via TrustToken) relies on Cohen & Company.
The main difference between Tether and Paxos is that the latter does not have any strong apparent ties to any exchange, whereas the former has a solid connection to Bitfinex. PAX is also issued by a trust that has been approved to do so by the New York State Department of Financial Services.
Whether PAX manages to dethrone Tether or not depends heavily on the choices the trust behind the coin makes as it continues to push new boundaries in cryptocurrency exchange circles.