Paxos has been going ahead to revamp its current platform to be able to solve some of the issues and the biggest headache that is within the stable coin community.
The Paxos Standard, PAX, is issued by Paxos, and they have gone ahead to announce that they have made it possible for PAX to be redeemed instantly by users.
What all this means for you is that for every PAX that gets deposited on the company platform it can immediately be sent to your bank in USD.
A solution to the persistent problem
Redemptions have been considered to be one of the most persistent issues that are being experienced by stable coin investors and issuers. Most of the problems being investors have a problem with withdrawing the coins and the issuers having a hard time to perform there KYC adequately.
But with the launch of the instant redemption, it will be able to do away with this problem as the new platform has been designed in a manner it is able to unify the USD and the PAX. The good news keeps rolling in as the company has ensured they have not set any fees or minimal redemption requirement for the deposits and the withdrawals that are done on the platform.
But it has not been all rosy as Paxos had been criticized for a long time by their users for delaying their redemptions. While the Gemini platform allegedly went ahead to close accounts that were owned by the two OTC trading desks. Let’s us not forget the dispute that the Tether was entangled in.
As it has given them the needed space to go ahead and grow, as it was recorded the total supply of the PAX had surged to levels of about $71 million, and the market carp increased to about 80% this is figures of $193 million.
“I think the effect of that news (about Tether) is that the market coming to the realization that there is something else out there (other than tethers) and I want to use something that I can trust more,” said Paxos head of marketing and communications Dorothy Chang.
There is a possibility of dominating the market
It is clear, the company that will be able to offer a substitute that is user-friendly and gives a much speedy redemption to users, then they will be able to easily bit off the $2.7 billion market cap for the company.
With all this Paxos seems to be heading in the right direction. Tether charges a fee for the fiat withdrawals and has a minimum redemption at about $100,000.
However, the Paxos platform has ensured they have done away with all these; thus, it is looking like a much more attractive option for the investors within the community.
But this is not all we should expect to see as the Paxos platform has been integrated with the itBit exchange, one that has been specially designed for crypto trading.