Paxos: Overview of the Cryptocurrency and Key Features

Paxos is a stablecoin cryptocurrency issued by the regulated financial company Paxos Trust Company. Its main goal is to offer users a digital asset fully backed by US dollars and overseen by financial regulators. Paxos Standard (PAX, now Pax Dollar or USDP) provides a secure and transparent way to store and transfer value on the blockchain, minimizing volatility compared to classic cryptocurrencies like Bitcoin or Ethereum.

Paxos transactions are transparent and can be viewed with standard blockchain explorers such as Etherscan. The USDP token primarily runs on the Ethereum blockchain using the ERC-20 standard, making it compatible with a wide range of decentralized applications. Support also exists for other networks like Binance Smart Chain.

You can store Paxos (USDP) in any wallet supporting ERC-20 tokens, such as MetaMask, Trust Wallet, Ledger, Trezor, and more. Creating a cold wallet is possible with hardware solutions like Ledger or Trezor, ensuring top-level security. USDP is also available on major exchanges: Binance, Kraken, Coinbase, Bitfinex, where you can store or trade it alongside other stablecoins like Tether or DAI.

As a stablecoin, Paxos USDP maintains a 1:1 peg to the US dollar, minimizing volatility compared to assets like Litecoin, Bitcoin, or Shiba INU. USDP's market cap is stable and depends on issuance and demand. During periods of high market turbulence, demand for stablecoins rises, boosting Paxos capitalization.

Paxos operates on the Ethereum network and is also integrated into Binance Smart Chain and other compatible networks. These networks also support stablecoins like DAI, Tether (USDT), TrueUSD, and popular altcoins such as Polygon, Uniswap, Wrapped, and Avalanche. This widens USDP's use in DeFi and cross-chain transactions.

To send Paxos USDP, you need an ERC-20 compatible wallet and a small amount of Ethereum to pay for gas fees. The average transaction fee depends on Ethereum network congestion, typically ranging from $0.50 to $2. On alternative networks like Binance Smart Chain, fees are even lower than on Ethereum, Bitcoin, or Ripple.

Paxos stands out for its transparency, high regulatory compliance, full fiat backing, and low volatility. Unlike privacy-focused coins like Monero or Zcash, Paxos prioritizes regulatory adherence. As a result, it is often used by companies and institutional investors for settlements and capital storage.

Paxos is actively adopted in the banking sector and among major fintech companies. It is used for instant international transfers, exchange settlements, and liquidity provision. Thanks to its transparency and fast transaction processing, USDP is becoming a key element of digital finance alongside coins like Tether and TrueUSD.