Paxos has secured full approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services, positioning Singapore as a key player in Paxos’s global stablecoin operations. The approval permits the issuance of stablecoins compliant with MAS’s forthcoming regulatory framework. DBS Bank Named Main Banking Partner as Paxos Secures MAS Approval Paxos, a […]
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Paxos Lays Off 65 Employees Following Yield-Bearing Stablecoin Launch
According to sources familiar with the matter, the stablecoin issuer Paxos is cutting 20% of its workforce. This development comes on the heels of Paxos International’s announcement of its yield-bearing stablecoin. Paxos Trims Workforce by 20% Bloomberg reports that Paxos has laid off 65 employees, which accounts for 20% of its staff. The information was […]
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Paxos International Debuts ‘Lift Dollar’ Stablecoin With Daily Yields
The blockchain and tokenization infrastructure platform Paxos has announced Paxos International has launched a new yield-bearing stablecoin called lift dollar (USDL). The stablecoin’s holders will earn overnight yield from short-term U.S. government securities and cash equivalent reserve assets with each USDL backed 1:1 in U.S. dollar value. New ‘Lift Dollar’ Stablecoin Offers Daily Returns on […]
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Paxos Expands to Solana Following NYDFS Nod, Widening Stablecoin’s Horizon
The tokenization and stablecoin platform Paxos has revealed plans to broaden its stablecoin issuance to the Solana blockchain. The company, which oversees the pax dollar (USDP), anticipates that Solana-issued USDP will be publicly available starting Jan. 17, 2024.
Paxos Set to Launch Stablecoin on Solana, Expanding USDP Reach in Crypto Market
On Friday, Paxos revealed that its Solana venture represents the first expansion to a new blockchain, as USDP was initially launched on Ethereum. The New York Department of Financial Services (NYDFS) reportedly endorsed Paxos’ initiative, enabling public access to USDP via Solana by mid-January 2024.
“The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers,” Paxos Head of Strategy, Walter Hessert said on Friday.
In addition to USDP, Paxos has been overseeing the issuance of the stablecoin BUSD until the NYDFS directed the cessation of its creation. Following this directive, a substantial portion of BUSD in circulation has been redeemed over the year. Paxos also collaborates with Paypal to oversee the issuance of Paypal’s newly introduced PYUSD stablecoin.
Currently, USDP is the ninth largest stablecoin in terms of market capitalization, with a circulating supply of 369,946,003 tokens. Bluechip’s stablecoin rankings assign USDP an A- grade, acknowledging its regulatory compliance and emphasis on customer protection, though it notes the stablecoin’s limited adoption in the wider crypto markets.
In the last 24 hours, USDP has seen ,937,693 in global trade volume, a modest sum compared to the trading volumes of major stablecoins like tether (USDT) at .80 billion and usd coin (USDC) at .68 billion. According to coingecko.com statistics, Binance is the most active exchange for USDP, with its most traded pairing being with USDT.
Additionally, Paxos disclosed the specific Solana smart contract address for USDP in its announcement. Currently, a mere 69 Solana-based USDP are in existence, with only five transactions recorded. The Solana explorer, Solscan.io, indicates that these token test transfers occurred eight days earlier.
“Paxos’s decision to bring stablecoin issuance to the Solana blockchain will showcase how Solana’s high-performance network and low transaction fees can support regulated financial products and provide leaders like Paxos new ways to scale and innovate,” Raj Gokal, the co-founder of Solana said on Friday.
What do you think about Paxos expanding to Solana? Share your thoughts and opinions about this subject in the comments section below.
Paxos Secures In Principle Approvals for Stablecoin Issuance and Crypto Services in Abu Dhabi
Paxos, a provider of blockchain and tokenization infrastructure, has recently received preliminary approvals from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. The company stated that these endorsements are crucial steps for Paxos, enabling it to issue stablecoins pegged to the U.S. dollar and introduce crypto brokerage and custodial services in the Abu Dhabi Global Market (ADGM).
Paxos Expands into Middle East: Receives Key Approvals for Crypto Operations in ADGM
These preliminary approvals mark Paxos’s significant venture into the rapidly evolving digital asset sector in the Middle East, the company explained on Wednesday. Paxos is set to operate under two regulated frameworks within the ADGM, pending final confirmation. In addition, Paxos has expressed its dedication to ensuring its custody and digital asset infrastructure services are fully compliant with FSRA’s stringent regulations.
“Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services,” Walter Hessert Paxos’s head of strategy detailed on Wednesday in the press announcement sent to Bitcoin.com News.
Hessert added:
Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.
A significant number of companies have recently been extending their operations into the United Arab Emirates (UAE), Dubai, and the Abu Dhabi Global Market (ADGM). In mid-September, the FSRA, ADGM’s financial watchdog, introduced six guiding principles to shape its strategy for regulating and supervising virtual assets.
Subsequent to these regulatory developments, Pyypl, a fintech company based in Abu Dhabi, secured million in Series B funding, while the bitcoin mining company Phoenix Group announced its oversubscribed initial public offering (IPO). Paxos has stated that it now adheres to the regulatory standards of New York, Singapore, and ADGM.
“Blockchain technology is revolutionizing the global financial system to be more open, secure, and innovative,” Hessert concluded.
What are your thoughts on this story? Let us know what you think in the comments section below.
PayPal’s PYUSD Fails To Capture Interest: 90% Of Supply Remains In Paxos’ Wallet
Paypal’s Ethereum-based stablecoin PYUSD has failed to capture crypto investors’ interest. According to data from Nansen, 90% of the stablecoin’s total supply still remains with its issuer Paxos’ wallet.
Paypal’s PYUSD Adoption Setback
The payment giant Paypal’s recently launched stablecoin PYUSD continues to struggle with adoption and has failed to gain traction since its official launch on August 7, 2023.
Despite PayPal having over 350 million users worldwide, on-chain data from Nansen has shown that only a small percentage of its user base is currently using and holding the PYUSD in self-custody wallets.
“On the surface there’s a lack of demand from crypto users for PYUSD when other alternatives exist,” said Nansen in a report.
However, it is believed that lack of enthusiasm might involve the stablecoin’s lack of utility and not being able to earn interest on the stablecoin, as highlighted by an X (formerly Twitter) user in a post on August 26, 2023.
Problem:
Nobody wants to mint $pyUSD because there’s not much to do with it and it doesn’t pay any interest.
Solution:
– $pyUSD – $crvUSD pool
– $CRV gauge approval from Curve DAO@PayPal@CurveFinance $PYPL #DeFi https://t.co/jVr7sN36KH pic.twitter.com/NUdsKmfY8F
— DefiMoon
(@DefiMoon) August 26, 2023
The stablecoin’s holdings on crypto exchange wallets are also low, accounting for just about 7% of the stablecoin’s total supply. This percentage takes into account the balances on centralized exchanges such as Kraken, Crypto.com, and Gate.io.
Despite the high expectations in the crypto industry following the release of the stablecoin that it would actually promote wider adoption and introduce cryptocurrencies to the masses for the first time, the stablecoin has failed to live up to expectations and smart money investors seem perfectly comfortable to circumvent the stablecoin.
The largest holder of the stablecoin holds less than ,000 worth of PYUSD after the holder sold about 3 meme coins to purchase the stablecoin. Excluding contracts or exchanges, not more than 10 holders have a balance surpassing ,000.
According to Coinmarketcap, PYUSD has a total supply of 43 million PYUSD tokens and pools in decentralized exchanges like Uniswap’s PYUSD/USDC and PYUSD/wETH accounts to only 50,000 PYUSD tokens respectively.
The PYUSD tokens have been criticized for being overly centralized, as the majority of its total supply turns out to be stored on centralized exchanges, resulting in difficulty in growing its circulation.
Despite such a high total supply, the collective total number of the stablecoin’s holders according to Etherscan is merely 324 at the time of this writing.
Expectations On Ethereum For The Stablecoin
According to JP Morgan analyst Nikolaos Panigirtzoglou, following the first week of Paypal’s stablecoin launch, Ethereum enjoyed no benefit from PYUSD when looking at things such as increased network activity, increased Total Value Locked (TVL), and enhancing Ethereum’s network utility as a stablecoin/DeFi platform.
Crypto experts and enthusiasts have also criticized PayPal for choosing Ethereum for its stablecoin due to the blockchain’s high transaction fees.
Co-founder of Sei Network Jayendra Jog said, “The gas fees of using PYUSD will be ridiculous, which will disincentivize its usage.”
He further added, “To help make the user experience better, PayPal will either need to subsidize transaction costs or will need to help support PYUSD on other networks with cheaper gas fees.”
Paxos Receives Wells Notice from SEC, NYDFS Orders Issuer to Stop Minting BUSD
According to a report published on Feb. 12, 2023, the New York-based financial institution and technology company, Paxos, has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) regarding alleged violations of investor protection laws. Paxos revealed the following day that it would no longer mint BUSD and it was ending its relationship with the Binance-branded stablecoin in Feb. 2024.
Report Claims SEC Plans to Sue Paxos for Alleged Investor Protection Violations, Firm Directed to Stop Minting BUSD
Sources cited by the Wall Street Journal (WSJ) say the U.S. Securities and Exchange Commission (SEC) plans to sue Paxos for violating investor protection laws. People familiar with the matter say Paxos received a Wells Notice, a letter sent by a securities regulator regarding a prospective lawsuit. The notice alleges that the stablecoin Binance USD, which Paxos issues and manages, is an unregistered security.
Three WSJ reporters published the report and contacted both Paxos and Binance for comment. Binance informed the WSJ that the stablecoin’s brand is licensed by the major exchange, but Paxos issues and manages the dollar-pegged asset.
A Paxos spokesperson told the reporters that the company is “not commenting on any individual matter.” The latest news follows an alleged investigation into Paxos by the New York State Department of Financial Services (NYDFS), which was originally reported by Nikhilesh De of Coindesk on Feb. 9.
Paxos was founded in 2012 and was originally named Itbit. In 2015, the New York Department of Financial Services (NYDFS) granted permission for Paxos to become a limited-purpose trust charter and the company changed its name from Itbit to Paxos Trust Company.
The firm manages two stablecoins: pax dollar (USDP) and binance usd (BUSD), as well as pax gold (PAXG). USDP has a market capitalization of approximately 8.16 million, while BUSD’s market valuation is estimated at around .1 billion.
PAXG has a market capitalization of approximately 2 million. Over the last 12 months, the supply of PAXG has declined by approximately 3.1%, while USDP has declined by 15.71%. Year-to-date statistics show BUSD’s circulating supply has dropped 9%, but during the mid-half of 2022, BUSD’s supply increased.
Paxos to Cease Minting Binance Stablecoin
Last month, 5 billion BUSD were redeemed in 24 days. Binance told the WSJ that it will “continue to monitor the situation” when questioned about the alleged SEC charges against Paxos. To date, the country’s top securities regulator has not taken any enforcement action against stablecoin issuers.
Following the report in the WSJ on Sunday, the publication further reported that the New York Department of Financial Services (NYDFS) has ordered the company to stop issuing BUSD. Paxos confirmed in a press release that it will stop minting the stablecoin and end its relationship with it by 2024. The company stated that it was directed by the New York regulator and has been working closely with the authorities. “BUSD will remain fully supported by Paxos and redeemable to onboarded customers through at least February 2024,” the press release states.
What do you think about the alleged SEC charges against Paxos and the future of stablecoins in the U.S.? Share your thoughts in the comments below.
Breaking: New York Regulator Orders Paxos To Stop Issuing Binance’s BUSD
Binance’s BUSD which is issued by Paxos continues to be one of the largest stablecoins in the crypto market. However, it looks like the stablecoin has now made it onto regulators’ radar as New York regulators have ordered Paxos to stop issuing new tokens.
No More BUSD Tokens From Paxos, Say NY Regulators
On Monday, the Wall Street Journal reported that New York regulators had asked Paxos to stop issuing the Binance BUSD stablecoin. These moves come ahead of the expected enforcement action that is supposed to be brought again crypto companies such as Paxos as more regulation swims into view.
This fact that a Wells Notice was issued to the company is particularly important because more often than not when regulators issue such a notice, legal action is expected to follow. As of this time, Paxos will stop issuing BUSD which the SEC says could qualify as an unregistered security.
After receiving the Wells Notice, the company now has 30 days to respond to it before further action is brought against them. But what’s more alarming for investors in the space is that Fox reporter Eleanor Terrett says more Wells Notices will reportedly be handed out in the next few weeks in an effort to take on the crypto industry.
Crypto Market Takes A Hit
Hours after news broke of the Wells Notice being served to Paxos, the crypto market is already seeing some downside. Bitcoin and Ethereum, the two largest cryptocurrencies by market cap are already trading in the red.
BUSD is also seeing a decline after dropping below its dollar peg following the news. The stablecoin which is the third largest in the space with a market cap of .1 billion fell to .991 briefly before recovering to be trading at .999 at the time of this writing.
The stablecoin is still trading 0.08% below its Sunday price but the news does seem to have affected other stablecoins in the market. USDT, the largest stablecoin issued by Tether, is still maintaining its 1:1 peg with the U.S. dollar, while USDC, the second-largest stablecoin issued by Circle, is slightly down 0.01% and is sitting at .9999.
Paxos Wins SEC No-Action Letter to Settle Equities on a Blockchain
The SEC has granted Paxos a no-action letter letting it settle equities products on a private blockchain.
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Paxos Launches Settlement Platform for Equity Securities After SEC Relief
n Paxos is launching its settlement platform for U.S.-listed equity securities, after receiving a no-action relief from the SECn
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