Paxos Trust Company
What is Paxos
Licensed financial institution Paxos Trust Company is established in the US. The business provides a variety of digital asset-related services, such as the issue, custody, and trading of cryptocurrencies and other digital assets.
Investors have a safe and legal option to access the cryptocurrency market with Paxos’ regulated platform for trading and keeping cryptocurrencies. According to US regulations, the company is a qualified custodian and is held to high operational and financial requirements.
Paxos provides custody and exchange services in addition to Paxos Standard (PAX), a stablecoin. The purpose of the USD-backed stablecoin PAX is to keep the US currency at a 1:1 parity.
This stablecoin is backed by reserves kept in US dollars by Paxos, which are routinely audited to ensure accountability and transparency.
Overall, Paxos Crypto offers a selection of services that facilitate access to and use of cryptocurrencies and other digital assets for individuals and institutions. Paxos is assisting in the mainstreaming of digital assets in finance by providing a regulated and secure platform for trading and custody.
The history of Paxos company
Paxos Trust Company was founded in 2012 by a group of financial and technology experts, including CEO Charles Cascarilla and COO Richmond Teo. The company was originally called itBit, and its initial focus was on providing a Bitcoin exchange and trading platform for institutional investors.
In 2015, the company received a trust company charter from the New York State Department of Financial Services (NYDFS), becoming the first company in the crypto industry to receive such a charter. This allowed Paxos to operate as a regulated financial institution and offer services such as custodianship and settlement.
In 2016, itBit rebranded as Paxos, reflecting its broader focus on the development of blockchain-based financial infrastructure. The company continued to expand its services, launching a blockchain-based platform for the settlement of precious metals trades in partnership with Euroclear in 2017.
In 2018, Paxos launched its stablecoin, Paxos Standard (PAX), which is backed by US dollars and is designed to provide a stable and secure alternative to other cryptocurrencies. The company has also partnered with other financial institutions, including Credit Suisse and Societe Generale, to develop blockchain-based solutions for various financial applications.
In 2021, Paxos announced that it had raised $300 million in a Series D funding round, valuing the company at $2.4 billion. The funding will be used to support the growth of Paxos’ products and services, including the development of new blockchain-based financial infrastructure.
Overall, Paxos has established itself as a leading provider of blockchain-based financial infrastructure, with a focus on regulatory compliance and institutional-grade security.
The company’s innovative solutions have helped to bridge the gap between traditional finance and the crypto industry, paving the way for broader adoption of digital assets in the mainstream financial system.
How Paxos works
Paxos Trust Company operates as a regulated financial institution and provides a range of services related to digital assets. Here is how Paxos works:
- Exchange services: Paxos operates a digital asset exchange that allows individuals and institutions to buy and sell cryptocurrencies and other digital assets. The exchange is regulated by the NYDFS and is subject to strict operational and financial standards.
- Custody services: Paxos offers custody services for digital assets, which means that it holds and secures digital assets on behalf of its clients. Paxos uses advanced security measures to protect the assets under its custody, including multi-factor authentication and cold storage.
- Settlement services: Paxos also offers settlement services, which means that it facilitates the transfer of digital assets between parties. The company uses its blockchain-based platform to ensure that settlements are fast, secure, and transparent.
- Stablecoin: Paxos has also developed a stablecoin called Paxos Standard (PAX), which is backed by US dollars and is designed to maintain a 1:1 peg with the US dollar. PAX is available for purchase and can be redeemed for US dollars at any time.
- APIs: Paxos provides APIs that allow developers to integrate the company’s services into their own applications. This makes it easier for businesses to access the crypto market and to build their own blockchain-based applications.
Overall, Paxos works by providing a range of services related to digital assets, including exchange, custody, settlement, and stablecoin services. By offering a regulated and secure platform for trading and custody, Paxos is helping to bring digital assets into the mainstream of finance.
Can Paxos products be trusted
Because Paxos is a regulated entity and is required to adhere to stringent operational, financial, and security standards, its goods and services can generally be relied upon.
Paxos has also put enhanced security procedures in place to safeguard the assets in its care. Multi-factor authentication, cold storage, and insurance protection for digital assets held in custody are some of these security methods. To make sure that its security and operational protocols adhere to industry best practices, Paxos has also completed third-party audits.
Additionally, the Paxos Standard (PAX) stablecoin is backed by US dollar reserves that are routinely audited by a third-party accounting firm. This promotes accountability and transparency and helps to guarantee that PAX keeps its 1:1 peg to the US dollar.
The company’s regulatory compliance, sophisticated security measures, and openness in its business practices all contribute to the high level of trust that consumers may place in Paxos goods.
However, there is always some risk associated with financial products, so before making any investment decisions, investors should carefully weigh the advantages and disadvantages of using Paxos’ products.