Paxos

Paxos

Type	Stablecoin
Total supply	117,452,361 PAX
Website	https://paxos.com/standard

Basics

• Founded in:
• Mainnet release:
• Based in:
• From this CoinDesk article (28-10-2019):

"The U.S. Securities and Exchange Commission (SEC) granted Paxos Trust Company no-action relief Monday to settle equity securities trades on a blockchain platform for broker-dealers. Paxos announced that Credit Suisse and Société Générale would be the first two companies to utilize the new Paxos Settlement Service, which would operate on a private and permissioned network."

Audits & Exploits

• Bug bounty program can be found [insert here]. None according to Blockchain Security DB (29-6-2020), which does show 2 audits (latest in 10-2018).

Token

Token Details

Paxos Gold (PAXG)

• "PAX Gold (PAXG) is a digital asset. Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company."
• "Paxos charges a small (1.0% - 0.02%) transaction fee, and the Ethereum network charges nominal gas fees (in Ethereum)."

Stablecoin

BUSD

• Has BUSD, a partnership between Binance and Paxos. BUSD is issued by Paxos Trust Company, an NYDFS-regulated entity. It has burned more than $700 million of BUSD tokens since the SEC told it to cease BUSD (15-2-2023). The maneuver is a sign of investors exiting BUSD quickly. The $700 million redemption in a little more than a day represents some 6% of the total coins in circulation.

USDP

• Previously, Paxos Standard Token (PAX), but got rebranded (25-8-2021).
• from CMC:

"Paxos Standard (PAX) is a stablecoin that allows users to exchange US dollars for Paxos Standard Tokens to 'transact at the speed of the internet'. It aims to meld the stability of the dollar with blockchain technology. Paxos, the company behind PAX, has a charter from the New York State Department of Financial Services, which allows it to offer regulated services in the crypto-asset space."

• The Novi wallet will use Pax Dollars (20-10-2021) as the main currency during the test (instead of their own DIEM).

Tech

• Whitepaper can be read here (14-2-2020)
• Code can be viewed [insert here].
• Built on: Ethereum

Compliance

• From Formal Verification (10-7-2020):

"Launched in 2018 with a law enforcement backdoor. From their perspective, this was a criterion that had to be met in order for Paxos to be regulated as trust company by the NYDFS."

• When the Poly Network hack happened, Paxos told CoinDesk (12-8-2021) it is currently “not doing anything” with blacklisting the involved tokens.

Their Other Projects

itBit

• Digital Asset Exchange

• Is a sponsor of Coin Center (as of 6-2019) and a member of Hyperledger, however, Paxos is as well, so maybe not itBit itself specifically.

Roadmap

• Can be found [Insert link here].

Usage

• From Coin Metrics #41 (10-3-2020)

"Over the last 180 days, Paxos (PAX) has outgrown Omni-issued Tether (USDT), Ethereum-issued Tether (USDT_ETH), USD Coin (USDC) and TrueUSD (TUSD) in terms of daily transactions count. PAX has grown about 545% over the period, while USDT and USDT_ETH transactions count has actually slightly declined.

USDC, however, led the way in terms of adjusted transfer value growth. USDC grew by about 80%, while PAX was about even.”"

• From Crypto Briefing (7-6-2020):

"40% of all PAX transactions relate to a Ponzi scheme called MMM BSC. Almost half of the transactions on the Paxos network represent 80% of activity. PAX’s daily volume is over $170 million."

Projects that use or built on it

• Credit Suisse has said (19-2-2020) it will be using Paxos.

Pros and Cons

Cons

• Had investment from bankrupt Alameda Research/FTX, which came out (11-11-2022) during the FTX crash. This could mean fall-out risk since this $5M worth of equity will likely be sold due to bankruptcy.

Team, Funding, Partners

Team

• Full team can be found [here].
• Mike Dudas; vice president and the head of stablecoin business development (3-2-2021)

Funding

• From CoinDesk (29-4-2021):

"The $300 million Series D was led by Oak, a growth capital firm focused on healthcare and fintech. Previous investors Declaration Partners, PayPal Ventures, Mithril Capital and others were also involved. Paxos announced a $142 million Series C in December 2020."

• Paxos announced (29-7-2021) a $300M Series D backed by Bank of America, Coinbase Ventures, FTX, and Founders Fund.
• Aptos; took part in their $200m strategic round (15-3-2022).
• Espresso Systems; is mentioned on their website as an investor, while the project has no tokens out yet (25-10-2022).

Partners 

• Is a sponsor of Coin Center.
• Member of Hyperledger.
• Partners with Securitize.
• Is a partner with FTX, according to the About Us page of FTX (20-4-2020).
• is working (19-2-2020) with Credit Suisse to settle U.S.-listed equity securities using a blockchain.
• Is working together with Paypal, where it will perform all crypto custody and trading (21-10-2020).
• Is mentioned as a partner on Ontology's website (2-11-2020).

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