With the blockchain technology has accelerated its pace by offering numerous benefits, the regulators worldwide have started using the immense potential that the technology has in place by applying the proper governing rules. Paxos, a Blockchain Trust Company has recently introduced a U.S. Dollar backed Stablecoin approved by New York regulators as per the valid source published as on 10th September.
The Stablecoin powered by Ethereum Blockchain, with backed 1:1 by the dollar, dubbed ‘Paxos Standard,’ has received the final approval by the New York State Department of Financial Services (NYDFS) that will set the regulatory supervision over the asset’s issuance and trading activities. Technically, Paxos is constituted in the form of a Trust company and is appropriately placed as “a fiduciary and qualified custodian of customer funds,” establishing its new coin offering ‘greater protections’ for customers assets than its competitors.
The press release statement profusely said today that the investors’ capital will be deposited in segregated accounts at various FDIC insured U.S. domiciled banks. Besides this, the press release explained, “When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody.”
Charles Cascarilla, Co-founder and CEO of Paxos believes that the new asset will definitely develop the utility of money by making it stable and with the robust regulatory in place that will be supervising of traditional fiat currencies with a crypto promise to build harmonize flows of digital value.
As per the press release report, investors that use the OTC desk or itBit exchange can redeem their crypto holdings for Paxos Standard instantly. The Stablecoin explores to get listed on the other marketplaces by organizing and executing trading activities under the PAX ticker symbol.
Amidst this development, another launch was Winklevoss Twins approved by NY regulators backed by Stablecoin with dubbed Gemini dollar. Both the projects concurrently offering the similar perspectives. Besides Paxos, Gemini dollar issued by a trust company approved by NYDFS backed 1:1 by the dollar and match with ECR 20 consistently. Both of them execute their services by having 24/7 with decentralized digital currency flows with the proper regulations in place.
Let us not forget the coins of both Gemini and Paxos are the world’s first coins regulated and powered crypto assets!!