What is Paxos?
Paxos is a blockchain infrastructure platform that builds regulated solutions for the tokenization, custody, trading, and settlement of digital assets. Founded in 2012, Paxos is based in New York and operates under the regulation of bodies like the New York State Department of Financial Services (NYDFS) and the Monetary Authority of Singapore (MAS). Paxos has cemented itself as a trusted partner for major financial institutions including PayPal, Mastercard, and Bank of America.
Paxos-Issued Digital Assets
Pax Dollar (USDP)
Pax Dollar (USDP) is a USD-backed stablecoin designed for global digital transactions. First issued in 2018, USDP is fully regulated and redeemable 1:1 for U.S. dollars, offering stability and transparency to users. Paxos supports global payments and remittances by integrating USDP into platforms used by institutions such as Mercado Libre and Nubank.
PayPal USD (PYUSD)
In partnership with PayPal, Paxos launched PayPal USD (PYUSD) in 2023, which has rapidly grown in adoption. PYUSD is a stablecoin built on the Ethereum blockchain, designed to provide seamless, programmable, and instantaneous payments across various platforms, including PayPal and Venmo. Its utility extends across cross-border payments, online shopping, and DeFi platforms. PYUSD can be redeemed for U.S. dollars and is backed 1:1 by cash, U.S. treasuries, and cash equivalents.
Pax Gold (PAXG)
Paxos also offers Pax Gold (PAXG), a digital asset backed by physical gold. Each PAXG token represents one fine troy ounce of gold stored in London vaults. Pax Gold allows users to own and trade fractional amounts of gold with the flexibility and liquidity of a cryptocurrency. The token is popular among investors looking to combine the benefits of blockchain technology with the intrinsic value of gold.
Paxos Crypto Brokerage and Financial Infrastructure
Paxos provides comprehensive crypto brokerage services that allow enterprises to offer crypto buying, selling, and holding capabilities directly within their platforms. Through its API-first, enterprise-grade infrastructure, Paxos enables financial institutions to integrate crypto assets securely. Services include trading, custody, and seamless transfers of digital assets.
Paxos’ brokerage services are designed with high regulatory standards, offering institutional-grade security and compliance across jurisdictions like the U.S. and Singapore. Partners like PayPal and Interactive Brokers use Paxos’ solutions to power crypto services, ensuring that digital assets are handled with industry-leading consumer protection and security measures.
Regulatory Compliance and Global Reach
Paxos’ commitment to regulatory oversight is central to its operations. All its stablecoins, including USDP and PYUSD, are fully backed by audited reserves, and monthly attestations are published to ensure transparency. Assets are held in segregated, bankruptcy-remote accounts to protect users in case of insolvency. Paxos operates under strict financial regulations, which has allowed it to build trust with major financial institutions globally.
Other Products and Services
In addition to stablecoins and tokenized gold, Paxos has expanded into settlement services for commodities and securities. It has worked with partners like TD Securities to streamline settlements, making them faster and more efficient by using blockchain technology. These services are tailored for institutional clients looking for reliable, real-time financial solutions.
Paxos has also launched innovative products like Lift Dollar (USDL), a yield-bearing stablecoin, and supports a variety of other services, including itBit, its digital asset exchange platform.
