Paxos rebranded its stablecoin from ‘Paxos Standard’ (PAX) to Pax Dollar (USDP), according to an announcement.
While releasing a public statement on Tuesday, Walter Hessert, Paxos head of strategy, stated, “The USDP ticker more easily identifies Pax Dollar as a US dollar-backed token … As USDP, everyone will be able to instantly recognize our token as a dollar-backed stablecoin.”
He further informed that this new transformation will allow both, the newcomers and the crypto literates, to collect USDP, which will be launched on August 31, 2021.
During an interview, Hessert further explained, “As the market shifts from crypto and DeFi use cases into more global use cases for payments for goods and services types of use cases stablecoins have a really important role to play there and frankly, there’s just a lot of demand for a regulated, trustworthy, transparent, stablecoin despite there being other options in the market. It became the right time for us to make the shift.”
Notably, the new development in Paxos will allow the stablecoin to distinguish itself from other stablecoin operators like Tether and Circle.
A month ago, Paxos published a blog post stating that USDT and USDC are unregulated.
Hessert also stated that the reserves collected by PAX are 100 percent cash or equivalent to it. For Paxos, those reserves are like short-term Treasury bills.
On one hand, Hessert appreciated Gemini for managing GUSD under a very similar regulatory regime, like Paxos, while on the other hand, he informed that the firm does not publish its reserves.
On August 23, Centre announced that after integrating USDC with commercial papers and other riskier debt instruments, the stablecoin started returning to cash and cash equivalent instrument.