Paxos has officially commenced the process of rebranding its stablecoin, Paxos Standard(PAX) to Pax dollar (USDP).
Speaking on the development, the organization’s Head of strategy, Walter Hessert, says the move is important because the USDP ticker more easily identifies Pax Dollar as a US dollar-backed token.
“This change makes it easier for both newcomers and the crypto literate to grasp our dollar backing. The updated USDP smart contract will go live on August 31, 2021,” Hessert said in conversation with The Block.
He also maintained that as the market gradually moves 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.
As a result of this, he noted that there is frankly a lot of demand for a regulated, trustworthy, transparent, stable coin. This availability is in spite of the availability of other options in the market. “It became the right time for us to make the shift, dessert noted.
Following the announcement, the Paxos effort to growing work to distinguish itself from competing stablecoin operators has increased, especially for Tether and Circle.
Hessert and other statement from the organization, like a last month publication, revealed that it has continued to maintain 100 percent reserves that are totally in cash or cash equivalents, an indication which means short-term Treasury bills.
While acknowledging that Gemini operates GUSD under a very similar regulatory regime, the strategy chief noted that the firm does not publish its reserves.
The respective reserves and transparency approaches of various stablecoins have become a central question for the crypto world and the primary area of competition between stablecoin operators.
In the early hours of August 23, Centre announced that USDC’s backing was returning to cash and cash equivalents after integrating commercial paper and other riskier debt instruments for much of the past year and a half.