On Friday of this week, Ontology, a public blockchain project, and a distributed trust collaboration platform, announced its plans to launch Paxos Standard (PAX) a regulated USD stablecoin, on the Ontology blockchain. With this news, Ontology will work to explore application scenarios on Defi (Decentralized Finance, another Ontology partner project) beyond exchanges and are expected to launch the PAX token on Ontology in May.
Based on Ontology’s OEP-4 token standard, the token (PAXO) will continue to use PAX as its ticker. PAX will enable atomic swaps between the Ontology-based main blockchain and blockchain network and make it easier for individuals and institutional partners to do business pegged to fiat in the Ontology ecosystem.
PAX was launched on September 10, 2018, with the approval of the New York State Department of Financial Services (NYDFS). It is the first regulated USD stablecoin that ensures open auditing, asset safety, and is supported by a large number of exchanges, making it a stable “digital dollar” unlike Tether, which cannot guarantee its token is always worth $1. All the deposits in USD are kept in independent accounts of FDIC insured banks registered in the US to ensure the safety of PAX tokens. Monthly audits of PAX are done by top US audit firms to ensure the amount of USD in the accounts is consistent with the PAX in circulation.
Since the release of the Ontology MainNet in June 2018, much progress has been made in scaling up and realizing business applications. Ontology also boasts rapid product iteration, community growth, and offers a customized and intuitive development platform for blockchain developers.
[perfectpullquote align=”full” bordertop=”false” cite=”Rich Teo, Co-Founder and Head of Asia for Paxos Trust” link=”” color=”” class=”” size=””]”We are pleased to announce that the Ontology Foundation has chosen PAX as the stablecoin to launch on their chain, and we believe we can offer more business application scenarios for Ontology. This news shows how PAX can continue to meet the ever-changing needs of digital asset communities and Paxos’ dedication to advancing innovation in virtual currencies”.[/perfectpullquote]
[perfectpullquote align=”full” bordertop=”false” cite=”Andy Ji, Co-Founder of Ontology” link=”” color=”” class=”” size=””]”The launch of PAX on the Ontology blockchain will greatly accelerate real business applications on Ontology, create more success stories of traditional businesses shifting to distributed businesses, and provide enterprise partners and institutional investors with a regulated, reliable, and safe gateway to the world of digital assets.”[/perfectpullquote]
Instantly Create & Redeem Paxos Standard (PAX)
Earlier in the week, the Paxos team also reported that users will soon be able to deposit USD and instantly send it out as PAX – and vice versa.
The team said, “We first introduced PAX last year knowing it was critical to give traders the ability to redeem a stablecoin anytime 1:1 for US dollars. This would be the ultimate sign that all reserves are fully-backed, reliable and accessible anytime. So we pioneered same-day redemptions with no minimums, maximums or fees. Over time, we made redemptions easier and easier, adding processing windows throughout the day.”