$0.999267

24H %

-0.07%

24H Low

$0.99

24H High

$1.00
DownloadIcon
TO

Linear
Log

About Paxos Dollar

Category

Stablecoin


Paxos Dollar Value Proposition


USDP is the native cryptocurrency of Paxos, a stablecoin that uses the Ethereum blockchain and is issued by the Paxos Trust Company. Every Paxos dollar (USDP) token is pegged to the U.S. dollar. This means the USDP price consistently remains around the $1 level, unlike more volatile cryptocurrencies such as bitcoin and ether whose prices rise and fall frequently.

This stability coupled with fast transaction times facilitated by the Ethereum blockchain makes USDP a useful cryptocurrency for things like global remittances.

USDP price

As a stablecoin, the USDP price should not deviate from $1 too much. However, in May 2021, the stablecoin hit a high of $1.52. This was around the time PayPal was rumored to be in talks about launching its own stablecoin with several potential partners, including Paxos Trust Company. It’s possible that demand for the stablecoin could’ve risen ahead of its supply, causing the stablecoin to move off its peg. This is because Ethereum transactions can settle within minutes versus bank transfers that take days to settle.

There is no supply cap for the Paxos dollar. However, the Paxos Trust Company can only issue new assets provided it has sufficient U.S. dollars in reserves at a ratio of 1:1.

All minting occurs through an Ethereum smart contract that automates the issuance and redemption process. All cash deposits held in the Paxos Trust Company reserves are secured at an FDIC-insured U.S. bank, and all bank accounts involved in the issuance and redemption of Paxos dollar (USDP) are audited by a third-party firm, Withum.

Paxos launched the original Paxos standard token on Sept. 14, 2018. In August 2021, Paxos rebranded it Paxos dollar (USDP) to more clearly identify the token as a stablecoin with its dollar peg. The USDP price has risen and fallen on several occasions, including up to $1.01 in September and down to 99 cents in October 2021.

How does Paxos dollar work?

USDP is issued on the Ethereum blockchain through the ERC-20 token standard, a set of blueprints for creating compatible fungible tokens on the Ethereum ecosystem. As a result, the USDP price stands to benefit from all upgrades coming to the Ethereum 2.0 network in the future, including the move to sharding to process a higher number of network transactions simultaneously.

It also means USDP is compatible with all smart contracts and decentralized applications (dapps) built on the Ethereum blockchain. Additionally, Paxos’ cryptocurrency brokerage platform is using Chainlink’s oracle network (another Ethereum-based platform) to broaden the adoption of Paxos dollar (USDP) within the decentralized finance (DeFi) ecosystem.

USDP is backed by U.S. Treasury bills with short maturities as a U.S. dollar equivalent.

Paxos dollar (USDP) is traded using what Paxos Trust Company refers to as “processing windows” to facilitate faster processing of conversions and fiat deposits/withdrawals every weekday and some weekend days.

Key events and management

Paxos dollar (USDP) was founded by the Paxos Trust Company – the same company behind the Paxos brokerage platform – with offices in New York, London and Singapore.

The firm has received a total of $540 million in funding from investors since its inception, including Mithril Capital, PayPal Ventures, Declaration Partners and OakHC/F.T.

Paxos Trust Company raised $3.3 million in the initial seed round on Nov. 11, 2013, and completed a $28.2 million Series A round two years later. This was followed by a $65 million Series B funding round on May 31, 2018. Between 2020 and 2021, the company managed to secure a further $442 million through Series C and D funding rounds.

In August 2021, Paxos standard became Pax dollar (USDP). Not all exchanges and cryptocurrency wallets have integrated this change fully but the USDP price functionality remains the same.


Paxos Dollar Market Cap

$872.15M

Paxos Dollar 24H Volume

$9.07M


Paxos Dollar Price

24H Open
$1.00
24H Change
$-0.000741
52 Week Low
$0.945212
52 Week High
$1.20
All Time High
$1.13
Returns (YTD)
-0.04%

Paxos Dollar Market Stats

Total Supply
872.79M
Max Supply
N/A
24H Value Transacted
$4.08M
30D Volatility
0.007203
24H Transaction Count
263
24H Average Transaction Fee
N/A

About Paxos Dollar

Category

Stablecoin


Paxos Dollar Value Proposition


USDP is the native cryptocurrency of Paxos, a stablecoin that uses the Ethereum blockchain and is issued by the Paxos Trust Company. Every Paxos dollar (USDP) token is pegged to the U.S. dollar. This means the USDP price consistently remains around the $1 level, unlike more volatile cryptocurrencies such as bitcoin and ether whose prices rise and fall frequently.

This stability coupled with fast transaction times facilitated by the Ethereum blockchain makes USDP a useful cryptocurrency for things like global remittances.

USDP price

As a stablecoin, the USDP price should not deviate from $1 too much. However, in May 2021, the stablecoin hit a high of $1.52. This was around the time PayPal was rumored to be in talks about launching its own stablecoin with several potential partners, including Paxos Trust Company. It’s possible that demand for the stablecoin could’ve risen ahead of its supply, causing the stablecoin to move off its peg. This is because Ethereum transactions can settle within minutes versus bank transfers that take days to settle.

There is no supply cap for the Paxos dollar. However, the Paxos Trust Company can only issue new assets provided it has sufficient U.S. dollars in reserves at a ratio of 1:1.

All minting occurs through an Ethereum smart contract that automates the issuance and redemption process. All cash deposits held in the Paxos Trust Company reserves are secured at an FDIC-insured U.S. bank, and all bank accounts involved in the issuance and redemption of Paxos dollar (USDP) are audited by a third-party firm, Withum.

Paxos launched the original Paxos standard token on Sept. 14, 2018. In August 2021, Paxos rebranded it Paxos dollar (USDP) to more clearly identify the token as a stablecoin with its dollar peg. The USDP price has risen and fallen on several occasions, including up to $1.01 in September and down to 99 cents in October 2021.

How does Paxos dollar work?

USDP is issued on the Ethereum blockchain through the ERC-20 token standard, a set of blueprints for creating compatible fungible tokens on the Ethereum ecosystem. As a result, the USDP price stands to benefit from all upgrades coming to the Ethereum 2.0 network in the future, including the move to sharding to process a higher number of network transactions simultaneously.

It also means USDP is compatible with all smart contracts and decentralized applications (dapps) built on the Ethereum blockchain. Additionally, Paxos’ cryptocurrency brokerage platform is using Chainlink’s oracle network (another Ethereum-based platform) to broaden the adoption of Paxos dollar (USDP) within the decentralized finance (DeFi) ecosystem.

USDP is backed by U.S. Treasury bills with short maturities as a U.S. dollar equivalent.

Paxos dollar (USDP) is traded using what Paxos Trust Company refers to as “processing windows” to facilitate faster processing of conversions and fiat deposits/withdrawals every weekday and some weekend days.

Key events and management

Paxos dollar (USDP) was founded by the Paxos Trust Company – the same company behind the Paxos brokerage platform – with offices in New York, London and Singapore.

The firm has received a total of $540 million in funding from investors since its inception, including Mithril Capital, PayPal Ventures, Declaration Partners and OakHC/F.T.

Paxos Trust Company raised $3.3 million in the initial seed round on Nov. 11, 2013, and completed a $28.2 million Series A round two years later. This was followed by a $65 million Series B funding round on May 31, 2018. Between 2020 and 2021, the company managed to secure a further $442 million through Series C and D funding rounds.

In August 2021, Paxos standard became Pax dollar (USDP). Not all exchanges and cryptocurrency wallets have integrated this change fully but the USDP price functionality remains the same.


Market Analysis
Social Analysis

Trending Assets

Bitcoin Calculator

Last Updated on 07/25/22 9:04 AM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.


Latest About Paxos Dollar

CoinDesk - Unknown
Bitcoin Drops to $19.7K as Recession Concerns Weigh on Financial Markets, Euro Nears Dollar Parity

Singapore’s state-owned investor Temasek said it sees more broader-market declines in the coming months.

CoinDesk - Unknown
CoinDesk - Unknown
First Mover Asia: Does Anyone Care Anymore if Bitcoin Dips Below $20K?

The more blasé crypto analysts become about a bitcoin price in the $10,000s, the more it seems like the bottom is in. Plus: The euro on Monday approached parity with the U.S. dollar.

CoinDesk - Unknown
CoinDesk - Unknown
Powell Says Fed Plans Recommendation to Congress on CBDC

The Federal Reserve chairman says a digital dollar is "something we really need to explore as a country."

CoinDesk - Unknown

Research Reports

All

Diving in deeper on cryptocurrency.

CoinDesk - Unknown
CoinDesk 2021 Annual Crypto Review

Thanks to 2021 most people have at least heard of crypto by now not just Bitcoin and Ethereum but altcoins like DOGE and SHIB as well as terms like NF Ts and the metaverse In Coin Desk Research’s 2021 Annual Crypto Review we aim to summarize some of the key themes and metrics that marked [...]

CoinDesk - Unknown
CoinDesk - Unknown
Building on the News: Introducing Layer 2 by CoinDesk

Our new digital magazine goes beyond the daily headlines to put crypto and blockchain developments in perspective.

CoinDesk - Unknown

Disclaimer
Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results. CoinDesk is an independently managed media company, wholly owned by the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. DCG has no operational input into the selection or duration of CoinDesk content in all its forms.