Paxos Standard has started offering auto-transfers between traditional accounts and stablecoins. Author: Publish date: Feb 12, 2020 12:00 PM EST
Paxos Standard (PAX) continues to blur the line between traditional finance and the blockchain -- to the benefit of its users.
One of several types of cryptocurrencies that attempts to offer both anonymity and stability, PAX is a regulated "stablecoin" -- those cryptocurrencies that are backed by reserve assets. Now, it's also begun offering auto-transfers between bank deposits and stablecoins, so that customers can automatically wire funds from U.S. bank accounts into either Paxos Standard or Binance USD stablecoins.
First issued in 2018 by the New York-based blockchain company Paxos, PAX was released as a token on the Ethereum Blockchain and is backed by funds held in FDIC-insured, U.S.-domiciled banks.
The Paxos Standard Token is now the fourth largest stablecoin with a market cap of $220 million and trading volumes of around $350 million daily. It is listed on over 100 exchanges, wallets and over-the-counter desks and has grown in popularity among traders due to its immediate settlement and verified reserves. Wire Me Some PAX
PAX FCAS is up 34-points (4.45%) since late-January when Paxos announced a new feature allowing customers to automatically wire transfer funds to or from their bank accounts. The goal is to increase the inflow of dollars on the Ethereum blockchain.
The team highlights the practicality of this new automated feature if you have weekly, recurring deposits of USD; if you are a trader who needs stablecoins on a weekly basis, or a merchant who accepts payment in stablecoins for instance. The team is actively making these transfers faster , “within minutes for requests below a certain USD threshold,” which explains the 10.22% increase in Developer Behavior we’re seeing.
FCAS is up 34-points (4.45%)
Developer Behavior is up 57-points (10.22%)
User Activity is up 14-points (1.48%)
Market Maturity is down 1-point (-0.10%) TheStreet Our Hot Take
Stablecoins provide the standard benefits of cryptocurrency without the volatility of price. This makes them extremely useful for users who wish to switch between a volatile cryptocurrency or traditional currency, and a more stable asset.
Regulations in the U.S., however, may deem stablecoins as evidence of debt that is put in circulation as money, forcing the issuer to be licensed as a bank or trust company. Paxos (formerly known as itBit Trust Company LLC) is well positioned in this regard because it is licensed as a limited purpose trust company , distinguishing itself within the blockchain industry as a trustworthy issuer.
“We’re really a technology firm at heart, and so we’re trying to give you the confidence of a bank, but the innovation of Silicon Valley,” Paxos CEO Charles Cascarilla says.
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