by Standard Bullion | March 01, 2025

What is Paxos?

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    <p class="fs-md">Paxos is a regulated blockchain infrastructure company that provides services for stablecoins, digital asset custody, and blockchain-based financial settlement. The company aims to bridge traditional finance with blockchain technology by offering safe and regulated digital assets.</p>

    

    <h2>Key Aspects of Paxos</h2>

    

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        <h3 class="fs-6 fw-bold">Paxos as a Blockchain Company</h3>

        <hr class="bg-primary">

        <ul>

            <li>Paxos builds blockchain solutions for financial institutions, enabling them to offer digital assets securely.</li>

            <li>It focuses on stablecoins, asset tokenization, and payment infrastructure.</li>

            <li>The company is regulated by the New York Department of Financial Services (NYDFS).</li>

        </ul>

    </div>

    

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        <h3 class="fs-6 fw-bold">Paxos Stablecoins</h3>

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        <ul>

            <li><strong>Pax Dollar (USDP):</strong> A fully regulated stablecoin backed 1:1 by US dollar reserves.</li>

            <li><strong>Binance USD (BUSD):</strong> Previously issued in partnership with Binance, but now discontinued by Paxos after regulatory scrutiny.</li>

        </ul>

    </div>

    

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        <h3 class="fs-6 fw-bold">Crypto Custody & Settlement Services</h3>

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        <ul>

            <li>Paxos offers secure custody solutions for digital assets like Bitcoin, Ethereum, and other cryptocurrencies.</li>

            <li>Settlement solutions allow institutions to clear and settle trades in real-time using blockchain instead of traditional banking networks.</li>

        </ul>

    </div>

    

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        <h3 class="fs-6 fw-bold">Tokenization of Assets</h3>

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        <ul>

            <li>Paxos enables financial institutions to tokenize real-world assets, including gold, commodities, and securities.</li>

            <li><strong>Example:</strong> Pax Gold (PAXG) – A blockchain-based gold token that represents real gold stored in vaults.</li>

        </ul>

    </div>

    

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        <h3 class="fs-6 fw-bold">Paxos Partnerships</h3>

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        <ul>

            <li><strong>PayPal:</strong> For crypto transactions.</li>

            <li><strong>Mastercard:</strong> For blockchain-based payments.</li>

            <li><strong>Bank of America & Credit Suisse:</strong> For blockchain settlement services.</li>

        </ul>

    </div>

    

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        <h3 class="fs-6 fw-bold">Regulation & Compliance</h3>

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        <ul>

            <li>Paxos is one of the few crypto companies regulated in the U.S., holding a Trust Charter from NYDFS.</li>

            <li>Complies with strict anti-money laundering (AML) and know-your-customer (KYC) regulations.</li>

            <li>Subject to audits and transparency requirements.</li>

        </ul>

    </div>

    

    <h2>How Does Paxos Compare to Other Stablecoin Issuers?</h2>

    <table class="fs-md">

        <thead>

            <tr>

                <th>Feature</th>

                <th>Paxos (USDP)</th>

                <th>Tether (USDT)</th>

                <th>Circle (USDC)</th>

            </tr>

        </thead>

        <tbody>

            <tr>

                <td><strong>Regulation</strong></td>

                <td>NYDFS Regulated</td>

                <td>Less transparent</td>

                <td>U.S. regulated</td>

            </tr>

            <tr>

                <td><strong>Reserves</strong></td>

                <td>100% cash & cash equivalents</td>

                <td>Some commercial paper in the past</td>

                <td>100% cash & short-term treasuries</td>

            </tr>

            <tr>

                <td><strong>Audit Transparency</strong></td>

                <td>Regular audits</td>

                <td>Less frequent audits</td>

                <td>Monthly attestations</td>

            </tr>

            <tr>

                <td><strong>Key Use Case</strong></td>

                <td>Institutional payments & settlements</td>

                <td>Trading & DeFi</td>

                <td>Payments & DeFi</td>

            </tr>

        </tbody>

    </table>

    

    <h2>Conclusion</h2>

    <p class="fs-md">Paxos is a trusted blockchain infrastructure provider known for its regulatory compliance and transparent stablecoins. It is a key player in digital asset custody, payments, and settlement services, making it one of the most reliable names in blockchain-based finance.</p>

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