Paxos Dollar

Paxos Dollar

USDP
$1.01
-0.87%
$0.99763274

24H Price

$1.03


About Paxos Dollar

The Paxos Dollar price is $1.01, a change of -0.87% over the past 24 hours as of 2:27 a.m. The recent price action in Paxos Dollar left the tokens market capitalization at $140.51M. So far this year, Paxos Dollar has a change of 0.69%. Paxos Dollar is classified as a Stablecoin under CoinDesks Digital Asset Classification Standard (DACS).

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.

USDP price

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.

How does Paxos dollar work?

USDP is issued on the Ethereum blockchain through the ERC-20 token standard, a set of blueprints for creating compatible fungible tokens on the Ethereum ecosystem. As a result, the USDP price stands to benefit from all upgrades coming to the Ethereum 2.0 network in the future, including the move to sharding to process a higher number of network transactions simultaneously.

It also means USDP is compatible with all smart contracts and decentralized applications (dapps) built on the Ethereum blockchain. Additionally, Paxos’ cryptocurrency brokerage platform is using Chainlink’s oracle network (another Ethereum-based platform) to broaden the adoption of Paxos dollar (USDP) within the decentralized finance (DeFi) ecosystem.

USDP is backed by U.S. Treasury bills with short maturities as a U.S. dollar equivalent.

Paxos dollar (USDP) is traded using what Paxos Trust Company refers to as “processing windows” to facilitate faster processing of conversions and fiat deposits/withdrawals every weekday and some weekend days.

Key events and management

Paxos dollar (USDP) was founded by the Paxos Trust Company – the same company behind the Paxos brokerage platform – with offices in New York, London and Singapore.

The firm has received a total of $540 million in funding from investors since its inception, including Mithril Capital, PayPal Ventures, Declaration Partners and OakHC/F.T.

Paxos Trust Company raised $3.3 million in the initial seed round on Nov. 11, 2013, and completed a $28.2 million Series A round two years later. This was followed by a $65 million Series B funding round on May 31, 2018. Between 2020 and 2021, the company managed to secure a further $442 million through Series C and D funding rounds.

In August 2021, Paxos standard became Pax dollar (USDP). Not all exchanges and cryptocurrency wallets have integrated this change fully but the USDP price functionality remains the same.

Read less...
Sponsor LogoBuy crypto on a secure, trusted platform.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don’t invest unless you’re prepared to lose all the money you invest.

Latest About Paxos Dollar

View All
Polychain CEO Olaf Carlson-Wee (Danny Nelson/CoinDesk)
Crypto VC Firm Polychain Tops Up AI Platform Ritual's $25M Funding Round With 'Multimillion Dollar' Investment

Blockchain firms are attempting to address concerns that Big Tech giants like Microsoft, Meta and Alphabet will build an artificial-intelligence oligarchy

Polychain CEO Olaf Carlson-Wee (Danny Nelson/CoinDesk)
(Billy Huynh/Unsplash)
Frax Finance Expands to Cosmos Ecosystem Via Asset Issuance Chain Noble

The Frax token (FRAX), a crypto-collateralized stablecoin pegged to the U.S. dollar, and its staked version, sFRAX, will become native to the Cosmos ecosystem via Noble.

(Billy Huynh/Unsplash)
BTC's price chart
Bitcoin Drops Over 5% as Upbeat U.S. Factory Data Powers Dollar Index to Nearly 5-Month High

The U.S. factory activity unexpectedly expanded in March, data released Monday showed, sending the dollar index higher.

BTC's price chart
Donald J. Trump at a rally (Gerd Altmann, modified by CoinDesk)
Who Will Trump Pick for Veep? Polymarket Gives Tim Scott Best Odds: Prediction Markets

Plus: Free money? "Democrat wins New York" contract trades at 90 cents on the dollar.

Donald J. Trump at a rally (Gerd Altmann, modified by CoinDesk)

Rootstock Chief Scientist, Sergio Demian Lerner, regards the upcoming Bitcoin halving is a moment of celebration for the community and highlights the importance of transaction fees for the sustainability of the network. Read more...

CoinDesk Indices

View All
Top Indices including Paxos Dollar
Logo
Index nameTickerWeight24H

Bitcoin Calculator

Last Updated on 04/15/24 2:27 AM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.