Paxos (PAX) Breaks $10 Billion in Transactions in a Little Over 4 Months

The Paxos Standard Token (PAX), which is fully collateralized 1:1 with the U.S. dollar and issued by the Paxos Trust Company, has seen more than $10 billion in transactions since its September 10 launch date.

According to data provided to SludgeFeed, Paxos is currently seeing a weekly transaction rate of nearly $580 million, with weekly redemptions currently standing at $16.7 million. Paxos has a total issuance of $394 million with the average redemption processing time of a little over 5 hours.

“When it comes to stablecoins, the transactional volume is more important than market cap because it shows real usage, confidence, adoption, and liquidity, which gives buyers and sellers more options,” states the Paxos team. “Since launching PAX, the stablecoin has consistently been at the top of volume charts, indicating that PAX is the king of stablecoins.”

Paxos’ transaction growth is partially due to its quick listing on¬†Binance. The addition came as part of the exchange’s efforts to move away from the Tether (USDT) standard, with a PAX/BNB trading pair first launching on September 29.

Notably, Paxos is¬†fully-regulated¬†under the authorities in the state of New York and the Paxos Trust Company is licensed with the SEC. However, some market analysts have voiced concern about Paxos’ control over PAX that the regulations require.

“We may freeze, temporarily or permanently, your use of, and access to, PAX or the U.S. dollars backing your PAX, with or without advance notice, if we are required to do so by law, including by court order or other legal processes,” reads the legal documentation for the stablecoin.

Nonetheless, the recent growth has brought the relatively new stablecoin to a $128.8 million market cap, making it the 40th largest cryptocurrency and the 4th largest stablecoin, trailing Tether, USD Coin (USDC) and TrueUSD (TUSD).

Recent:¬†South Korean Fintech Firm Launches ‘First’ Won-Backed Stablecoin

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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