Paxos, a blockchain infrastructure platform, has announced that its native stablecoin called paxos standard (PAX) will now be known as pax dollar (USDP). The company says the rebranded version of the stablecoin "more easily" identifies itself as a US dollar-backed token.
"As use cases for stablecoins rapidly expand, the demand for a regulated USD token has grown significantly," said Walter Hessert, Head of Strategy at Paxos.
Hessert also emphasized Paxos is committed to ensuring USDP "always equals a dollar," as the asset's reserves are "held 100% in cash and cash equivalents."
At the same time, Circle — Paxos' main competitor — also plans to convert reserves "entirely" in cash and short-duration US government treasuries. Centre, the Circle-founded project that regulates USDC, said the changes are being implemented expeditiously and will be reflected in future attestations by Grant Thornton.
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