Paxos Announces Issuance of $50mln. of Dollar-Backed Stablecoin

Paxos, the blockchain trust company, has tweeted that it has successfully distributed roughly $50 million worth of its recently unveiled US dollar pegged stablecoin.

The stablecoin, which is built on the Ethereum (ETH) blockchain, named Paxos Standard Token (PAX), has received regulatory approval from the New York State Department of Financial Services (NYDFS) in early September.

Data provided by Etherscan indicates that 54,173,926.22 PAX worth $54,747,130.61 are in circulation.

Dorothy Jean Chang, Paxos’ vice president of marketing and communications, has pointed out that Paxos had only “just” formally reported the distribution of $36 million worth coin during the initial month since its launch, “2 hrs” sooner than her tweet about reaching the $50 million level.

The fast rate of token issuance happens as Paxos is eking out daring claim to have “achieved the fastest, widest institutional adoption of any digital asset.” Ahead of October 15’s official statement about tokens worth 36 million and Chang’s following tweet about $50 million tokens on September 28, Paxos’ third-party auditor Withum delivered its audit report for the firm, authenticating that Paxos held approximately $14.6 million in its reserve account, roughly matching the number of PAX tokens in circulation at that time.

Paxos has also pointed out that “six of the top ten crypto exchanges” have listed the stablecoin. This includes Binance and OKEx, with OKcoin and itBit to list soon.

Notably, OKEx, third largest crypto exchange by market cap, has announced that it would soon be listing four stablecoins namely PAX, TrueUSD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Furthermore, US-based crypto payment processor BitPay has announced that it is accepting two stablecoins, namely GUSD and USDC, for merchant settlement.

PAX, in reality, is competing with a number of other newly-issued stablecoins. It announced its official NYDFS-approved launch the same day WInklevoss twins introduced Gemini dollar, which is New York regulator-authorized, dollar pegged, ECR-20 compatible stablecoin.

Notably, the announcement made by Paxos’ coincided with stablecoin Tether’s (USDT) decline below its historical trading range, in the middle of Bloomberg reports alleging loss of market trust.