Paxos has revealed rebranding efforts for its stablecoin. Instead of the known Paxos Standard (PAX), the company is changing the stablecoin’s name to Pax Dollar (USDP).
Speaking with The Block, Paxos head of strategy Walter Hessert says that the USDP ticker is more appropriate as it allows the public to easily determine that the Pax Dollar is an asset-backed by the US dollar. According to Walter, the USDP smart contract will launch on August 31.
Walter also revealed that the shift was necessary because of the growing crypto and DeFi space. The strategy head said that the general market is moving from crypto and DeFi specifics to more global use cases necessary for trade. According to him, stablecoins have an important role to play in this development.
Walter Hessert also said that despite the other stablecoin options in the market, there is still “a lot of demand for a regulated, trustworthy, [and] transparent stablecoin.” The comment seems to directly tackle other stablecoins, suggesting a lack of clarity in their operations.
Last month, a Paxos blog post revealed that its stablecoins are 96% backed by cash or equivalents. The post fired shots at USDC and USDT. It said:
“Neither USDC nor Tether tokens are ‘stablecoins’ in anything other than name. These tokens are backed by illiquid and risky debt obligations – a critical weakness that no prudential regulator would allow to exist as this creates undue risk for their customers.”
Image Credits: Pixabay
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