Pax Dollar
About Paxos Dollar
The price of Pax Dollar (USDP) is $1.00 today, as of Sep 16 08:26 p.m., with a 24-hour trading volume of $10.42M. Over the last 24 hours, the price has increased by 0.10%. Pax Dollar currently has a circulating supply of 104.77M and a market cap of $104.89M.
USDP is the native cryptocurrency of Paxos, a stablecoin that uses the Ethereum blockchain and is issued by the Paxos Trust Company. Every Paxos dollar (USDP) token is pegged to the U.S. dollar. This means the USDP price consistently remains around the $1 level, unlike more volatile cryptocurrencies such as bitcoin and ether whose prices rise and fall frequently.
This stability coupled with fast transaction times facilitated by the Ethereum blockchain makes USDP a useful cryptocurrency for things like global remittances.
As a stablecoin, the USDP price should not deviate from $1 too much. However, in May 2021, the stablecoin hit a high of $1.52. This was around the time PayPal was rumored to be in talks about launching its own stablecoin with several potential partners, including Paxos Trust Company. It’s possible that demand for the stablecoin could’ve risen ahead of its supply, causing the stablecoin to move off its peg. This is because Ethereum transactions can settle within minutes versus bank transfers that take days to settle.
There is no supply cap for the Paxos dollar. However, the Paxos Trust Company can only issue new assets provided it has sufficient U.S. dollars in reserves at a ratio of 1:1.
All minting occurs through an Ethereum smart contract that automates the issuance and redemption process. All cash deposits held in the Paxos Trust Company reserves are secured at an FDIC-insured U.S. bank, and all bank accounts involved in the issuance and redemption of Paxos dollar (USDP) are audited by a third-party firm, Withum.
Paxos launched the original Paxos standard token on Sept. 14, 2018. In August 2021, Paxos rebranded it Paxos dollar (USDP) to more clearly identify the token as a stablecoin with its dollar peg. The USDP price has risen and fallen on several occasions, including up to $1.01 in September and down to 99 cents in October 2021.