Pax Dollar

Overview

Pax Dollar (USDP) is a regulated stablecoin backed 1:1 by US dollars held in FDIC-insured US banks. It was launched by Paxos, a regulated financial institution and blockchain infrastructure platform.

Purpose and Utility

The primary purpose of USDP is to serve as a stable digital dollar that enables instant transactions on blockchain networks while maintaining a reliable peg to the US dollar. It's designed for institutional and enterprise use, particularly in scenarios requiring regulated stablecoins.

Business Model

Paxos maintains full reserves of US dollars backing each USDP token in circulation. The company generates revenue through institutional services and partnerships rather than through interest on reserves. The business model is transparent and regularly audited by third parties.

Real-World Adoption

USDP has established partnerships with major financial institutions and payment providers. It's primarily used for trading, settlements, and as a stable store of value on various blockchain platforms. The token has significant trading volume on major cryptocurrency exchanges.

Platform Development

Paxos maintains active development of their platform and regularly updates their infrastructure. The company holds multiple regulatory licenses and operates under strict oversight from financial authorities.

Token Distribution

USDP tokens are created and burned based on demand, with each token backed by actual USD deposits. There is no token allocation to founders or team members as it functions purely as a stablecoin.