Pax Dollar
Crypto Overview
Overview
Pax Dollar (USDP) is a regulated stablecoin backed 1:1 by US dollars held in FDIC-insured US banks. It is issued by Paxos Trust Company, a regulated financial institution and custodian.
Intended Utility
The primary purpose of USDP is to serve as a stable digital asset for trading, payments, and storing value on blockchain networks. It aims to combine the stability of the US dollar with the efficiency of blockchain technology.
Business Model
Paxos maintains full reserves backing each USDP token with US dollars in segregated accounts. The company generates revenue through partnerships with institutions and exchanges that use USDP, rather than through interest on reserves.
Actual Utility Assessment
USDP is actively used on major cryptocurrency exchanges for trading pairs and as a stable store of value. It has significant adoption among institutional clients and is integrated into various blockchain payment systems. The token demonstrates consistent usage aligned with its intended purpose as a stablecoin.
Platform Development
Paxos regularly updates its platform and maintains regulatory compliance. The company has a strong technical team and continues to expand its services and partnerships within the digital asset space.
Token Distribution & Governance
USDP tokens are minted and burned based on actual dollar deposits and withdrawals. There is no pre-mine or founder allocation, as tokens are only created when dollars are deposited.
Revenue Model Analysis
The business model does not rely on interest-bearing activities for the stablecoin itself. Revenue comes from business partnerships and integration fees.
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.