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Blockchain infrastructure company Paxos is renaming its Paxos Standard stablecoin as Pax Dollar with the ticker USDP.
- Paxos believes the USDP ticker more easily identifies the stablecoin as a U.S. dollar-backed token, head of strategy Walter Hessert said in a blog post Tuesday.
- "USDP reserves are held 100% in cash and cash equivalents. ... This names makes it obvious to anyone – USDP is a dollar," Hessert wrote.
- Paxos asked its ecosystem partners to reflect the stablecoin's new branding ahead of the updated smart contract going live on Aug. 31.
- "USDP is an important step towards making regulated digital dollars ubiquitous," Hessert wrote. "Stablecoins have the ability to transform global payments and USDP is the regulated solution."
- The announcement follows shortly after Circle's confirmation that USDC, the second-largest stablecoin by market capitalization, will be 100% backed by cash and short-term U.S. Treasurys by September.
- There remains however some opacity around the composition of USDT provider Tether's reserves. A breakdown released in May revealed that some 49% of tokens USDT tokens were backed by unspecified commercial paper.
- USDT nonetheless remains by far the world's largest stablecoin, with a market capitalization of over $65 billon. USDP's is $944 million.
Read more: Bank of America, COINBASE Ventures Invested in Paxos’ $300M Funding Round
