Paxos Issues $100M Stablecoins On Ontology Blockchain

Paxos, which is an issuer of stablecoin, will reportedly form a partnership with Ontology. The joint initiative is specifically designed for the issuance of around 100 million of PAX tokens, which are said to be pegged 1:1 to the U.S. dollar. The issuance, in particular, will be made possible directly on the blockchain network of Ontology. This initiative will start to exist next month.

The Main Purpose

The launch has a primary purpose, which is to pave an easier way for businesses and individuals – all of which hare utilizing the ONT token of Ontology – when it comes to transacting in fiat-pegged tokens. This one was made official by the company on its announcement recently.

By essence, the Paxos Standard (PAX) is one that is deemed to be a regulated U.S. dollar-backed stablecoin. It was launched by Paxos back in September last year. Right now, the availability of the stablecoin is only made possible on the Ethereum blockchain and is considered to be an ERC-20 token. But with the new initiative, a second option is going to be made available.

Basically, there is a newer version of PAX. And like its past version, this one is believed to possess the same ticker symbol. But perhaps the most interesting part here is the fact that it will follow the Ontology blockchain’s very own OEP-4 token standard.

A Safe, Reliable Gateway

According to Andy Ji, the co-founder of Ontology, PAXOS will remain to be the entity specifically meant for performing know-your-customer process, as well as the deposit and withdrawal of U.S. dollar. However, it has the ability to provide authorization to Ontology, allowing the latter to simply issue the PAX on its blockchain via the new initiative.

Ji added that bringing Pax to the aforementioned blockchain will significantly boost real business applications on Ontology. Even more so, it will develop more success stories in terms of traditional businesses transforming to distributed businesses. It will even develop a safer, more reliable, and regulated gateway to the world of digital currencies – one that will benefit all institutional investors and enterprise partners.

Apparently, the announcement from the company came right at the time allegations from the New York Attorney General have reached the Bitfinex exchange. Basically, these allegations suggest that the latter has at least $850 million of corporate and client funds and, at the same time, made use of Tether’s reserves in an attempt to cover the loophole.