Pax Dollar or USDP Stablecoin is a leading regulated stablecoin issued by Paxos and pegged to the US dollar by a 1:1 backing. Regulated by the New York State Department of Financial Services (NYDFS), it is safe to use this digital currency to make payments and transfer money without worrying about volatility.

You can use the USDP Stablecoin to send and receive US dollars anywhere in the world instantly and at low costs, powered by blockchain technology. Unlike traditional banking systems, which are centralized in nature, the blockchain-powered USDP facilitates decentralized, peer-to-peer payment transfers quickly, more efficiently, and with greater security.

The Pax Dollar can be purchased on the Paxos platform or via cryptocurrency exchanges via your computer or smartphone. You can then convert your fiat currency into USDP stablecoins and access a wide range of financial services.

Paxos aims to improve financial access with its Pax Dollar stablecoin, allowing even the unbanked global population to use its service for sending and receiving money. USDP is supported by leading crypto exchanges, wallets, trading desks, blockchains, and DeFi applications.

The history of the Pax Dollar dates back to 2012 when Paxos launched the first regulated crypto exchange, itBit, in the market. In 2015, the company became the first to secure an NYDFS Charter for Digital Assets, becoming a regulated entity.

Paxos issued the worlds first regulated stablecoin, PAX, in 2018, rebranded as the USDP Stablecoin. The success of its stablecoin then encouraged the company to offer a gold-backed token on the blockchain, PAX Gold (PAXG). At its launch in 2019, PAX Gold was the worlds first regulated crypto asset backed by precious metal gold.

Paxos went on to establish its regulated status over the years. In 2019, it received the honor of becoming the worlds first and only company to obtain the US SECs permission to pilot the use of blockchain technology to settle trades in the stock market. In 2021, it also received preliminary approval for establishing a de novo national Trust Bank charter.

In August 2021, Paxos announced its decision to rebrand the stablecoin from Paxos Standard (PAX) to Pax Dollar (USDP). The decision made the USDP Stablecoin easier to identify as a dollar-backed digital asset.

The USDP Stablecoin is a versatile crypto asset to invest in and hold, especially when you wish to safeguard against bearish conditions in the crypto market or high volatility. In such times, you can easily convert your crypto holdings into USDP and hold them without worrying about steep losses or exiting the market.

Since the Pax Dollar price remains pegged to the USD, you can also safely invest in it to conduct digital transactions and make payments online. It offers a far more convenient payment method than traditional banking solutions and fiat currency, especially international money transfers.

Remittances and online payments using USDP Stablecoin are faster, cheaper, and more secure thanks to the underlying blockchain technology. Unlike centralized models, where intermediaries take considerable time to process transactions, decentralized transactions on the Ethereum blockchain using the ERC-20 token USDP are quick and easy.

The USDP Stablecoin has several use cases, including:

Digital Currency

As a digital currency equivalent to the US dollar, USDP Stablecoin can be conveniently used for shopping online or transferring payments digitally. The crypto token is fast, safe, easy, and cheap to transact with.

Safeguard Against Crypto Market Volatility

In times of high uncertainty and volatility in the crypto market, you can sell your crypto assets for stablecoins, such as the USDP. As the USDP is backed 1:1 by US dollars, you never have to worry about making losses even if the crypto market experiences a downturn. Switching to stablecoins such as USDP in your portfolio gives you a safe avenue to park your funds without exiting the market.

Trade Against Other Crypto Assets

You can use USDP as the base currency in crypto trading. For better portfolio control, sell USDP to buy other crypto assets in the market. Always review the real-time price of USDP Stablecoin, USDP market cap, circulating supply, and 24-hour volume before you trade Pax Dollar in the market.

Earn Passive Income

You can buy and hold USDP on several platforms that offer attractive interest rates. This is a safe way to put your crypto to work and generate passive income risk-free and conveniently.

Paxos maintains the USDP Price at 1 USD through full 1:1 backing by US dollar reserves held by Paxos Trust Company. These reserves are kept in cash and cash equivalents, making USDP fully redeemable for USD anytime.

Holding customers funds in cash and cash equivalents lets Paxos keep their funds wholly safe and easily accessible whenever customers want to redeem their USDP tokens. The company also dynamically adjusts the total supply of USDP based on its dollar reserves to maintain the USDP Stablecoin price at $1.

There are several ways to earn USDP. Here's a look at some of the popular options:

Exchange USD for USDP

Head to a cryptocurrency exchange like BYDFi or open an account with Paxos to exchange your USD or fiat currency for USDP tokens.

Trade USDP Against Other Cryptos

Head to a crypto exchange such as BYDFi to trade other crypto assets for USDP. Sell your existing crypto holdings to buy USDP based on market conditions. If your trade idea is successful, you could also generate profits and earn extra USDP during your trades.

Staking or Lending USDP

USDP token holders can stake or lend their tokens on supported platforms to earn attractive APYs. Perform online research to find the best-suited platforms that support these operations, are reliable, and offer the most lucrative returns to help you earn USDP and grow your holdings.

Here are some ways you can redeem USDP Stablecoins and exchange them:

Create a Paxos Account

Register for an account on Paxos and redeem your USDP tokens for USD. It is safe, convenient, and quick. You can instantly withdraw your funds after redemption in the form of US dollars.

Use a Crypto Exchange

Head to a trading platform, e.g., BYDFi, to sell your USDP and withdraw your funds in fiat currency. Crypto exchanges offer low trading fees, fast turnaround time, and high security when redeeming USDP.