Paxos (PAX) - a stablecoin without controversy

As a rule, Stablecoins were supposed to be cryptocurrencies that hardly anyone hears about. Example Tether, which regularly provides food for media not only economic, shows that it is not always successful. In case of Paxos cryptocurrencies (PAX) however, it is completely different - it is a stablecoin that does its job perfectly. 

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Paxos - a stablecoin, which is not the most popular, which, however, can be considered its greatest advantage.

What are stablecoins

At the beginning, it is worth answering the question of how they work stablecoiny. They are a complete contradiction of what is happening on the cryptocurrency market - their rates are not shaken by dynamic increases, they do not plunge into unexpected declines. There is no practical possibility for their price to change radically from hour to hour, which is the norm with most cryptocurrencies, and most accepted by the majority. 

There are several types of stablecoins. Some of them are related to fiat currencies and reflect their value in a 1: 1 ratio. Their issuers hold a specific amount of traditional currency in which the issued digital units are covered. Thanks to this, they can be easily exchanged for cryptocurrencies without large fees at any time, or you can sell cryptocurrencies and convert them into stablecoins without the costly transfer from the cryptocurrency exchange and conversion to fiat currencies. They also act as a price stabilizer on competitive cryptocurrency exchanges, to limit the possibilities of arbitration. So you can admit that it is a safe haven in the world of cryptocurrencies without much risk.

How stablecoin Paxos (PAX) works

Paxos standard is a token secured on a one-to-one basis by USD deposits. Importantly, once a unit is redeemed and converted to USD, it is immediately removed from inventory. It can only exist if the corresponding amount of dollars is adequate.

Stablecoin issues Paxos Trust Companywhich is a regulated financial institution. The first units were aired on September 27, 2018. For obvious reasons, the next ones cannot be dug out, because they are created after the funds are deposited and verified, which go to the Paxos trust fund.

It operates in accordance with the banking law of the state of New York, which it controls on an ongoing basis Financial Services Department New York State. All dollars are deposited with FDIC-insured banks operating within the United States. Some are also secured by Treasury bonds.

Now PAX can be purchased even through the Paxos Crypto Brokerage application, and even implement this service in your own application. He has already taken advantage of it Revolut.

“With Paxos Crypto Brokerage, companies can leverage our expertise and regulatory compliance to easily and securely integrate cryptocurrencies into their applications. We are proud to offer a financial market infrastructure that supports an open digital financial future " - underlines Charles Cascarilla, CEO and co-founder of Paxos.

Paxos cryptocurrency quotes

Currently, the Paxos cryptocurrency (PAX) can be traded at 43 Cryptocurrency exchanges from around the world. As of May 21, 2021, there are 244 traded out of the available 951 units, which is the equivalent in USD. However, it is not always possible to maintain the exact convertibility into dollars right away. During the huge sell-off and increased activity in the cryptocurrency market on May 954, 249, Paxos was paid as much as $ 952.