Pax Dollar
Crypto Overview
Overview and Intended Utility
Pax Dollar (USDP) is a regulated US dollar-backed stablecoin issued by Paxos Trust Company. Its primary intended utility is to serve as a digital representation of the US dollar on blockchain networks, maintaining a stable 1:1 peg with USD. Each USDP token is fully backed by US dollars held in FDIC-insured US banks and short-term US Treasury bills.
Business Model and Implementation
Paxos operates under a regulated framework, with oversight from the New York State Department of Financial Services (NYDFS). The business model involves users depositing USD to receive USDP tokens, which can then be used for digital transactions, trading, or as a stable store of value. Paxos generates revenue through transaction fees and the interest earned on the reserved assets.
Real-World Adoption and Usage
USDP has achieved significant adoption in the cryptocurrency ecosystem, particularly in trading markets and as a settlement currency. It is integrated with major cryptocurrency exchanges and payment platforms. The token maintains consistent trading volume and serves its intended purpose as a stable digital dollar.
Founder and Team Assessment
Paxos, founded by Charles Cascarilla and Rich Teo, has a strong track record in financial services and regulatory compliance. The company maintains transparency through regular attestations of its reserves and has developed multiple regulated financial products beyond USDP.
Crypto Impact
To assign a comfort level investing in Pax Dollar from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Pax Dollar.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.