Stablecoin PAX Garners $10 Billion in Transactional Volume to remain at the Top of Trading Charts
In September 2018, a New York blockchain startup, Paxos Trust Company successfully launched the PAX token. The token has a complete 1:1 surety with the U.S. dollar; as such it offers a liquid digital option to cash and is available round the clock for immediate transactions and redemptions.
Four months since its launch, PAX has had a record transaction volume of more than $10 billion which includes on-chain transaction volume and exchange trading volume.
Data shows that the weekly transaction rate is almost $580 million and the weekly redemptions as of now are at $16.7 million. In total, Paxos has an over-all issuance of $394 million.
— Paxos Standard (PAX) (@PaxosStandard) January 29, 2019
King Of Stable Coins
According to the Paxos Team, PAX can be considered as the king of stablecoins. This is due to the fact that, from the moment PAX was launched late last year, it has steadily remained at the top of volume charts.
They also added that the volume of transaction is much more important than the market cap. The transactional volume of stable coins shows the actual usage, adoption, confidence, and liquidity. This provides traders with more than one option.
Paxos’ growth in trading volume is greatly attributed to being listed on Binance. The exchange platform has been making efforts to regress from Tether (USDT) standard. Their determination bore fruit because, on 29th September 2018, they launched PAX/BNB coin trading pair.
Other well-known exchanges where PAX has been listed include, KuCoin, OKEx, and Gate.io and many more.
Paxos is approved and fully controlled by the New York State Department of Financial Services. It has also been approved by the Securities Commission (SEC).
Stable Coin Regulations
A legal document for the standard token allows Paxos to freeze your use of or access to PAX or U.S. dollars that back up your tokens. The restrictions can either be permanent or temporary and may be carried out without prior notice. The company can proceed in taking such actions as required by law, court orders or any other legal processes.
The PAX developers created commands that would allow law enforcement agencies to freeze wallets and destroy any assets. This has led some of the market analysts to raise concerns regarding Paxos’ control over the stablecoin. The analysts cited that, a normal legal process was a better alternative.
Paxos allows financial markets to transact in a fully collateralized asset that profit from blockchain technology thus empowering a frictionless global economy. PAX is issued directly following the ERC-20 protocol thereby eliminating the need for a middleman because the system operates as programmed. In addition, the redemption window is shorter. This means that it takes at least five hours to redeem the tokens for dollars and at a lower fee.
This current progress has elevated the new stablecoin to a market cap of $128.8 million. This has made PAX become the fourth largest stablecoin and fortieth largest cryptocurrency trailing USD Coin (USDC), Tether, and TrueUSD (TUSD).