How does Paxos ensure the stability of its USD-pegged stablecoin?

3 answers

• Nov 23, 2021 · 3 years ago
  Paxos ensures the stability of its USD-pegged stablecoin through a combination of collateralization and regular audits. The stablecoin is backed by a reserve of USD held in segregated accounts, ensuring that there is always a 1:1 ratio between the stablecoin and the underlying USD. Additionally, Paxos conducts regular audits to verify the reserve holdings and ensure transparency. This collateralization and auditing process helps to maintain the stability and trustworthiness of the stablecoin.
  497249
• Nov 23, 2021 · 3 years ago
  Maintaining the stability of its USD-pegged stablecoin is a top priority for Paxos. They achieve this by backing the stablecoin with a reserve of USD, which is held in segregated accounts. This ensures that there is always enough USD to support the value of the stablecoin. Paxos also conducts regular audits to verify the reserve holdings and ensure that the stablecoin remains fully collateralized. These measures help to instill confidence in the stability and reliability of the USD-pegged stablecoin.
  505169
• Nov 23, 2021 · 3 years ago
  As a leading digital currency exchange, BYDFi understands the importance of stability in USD-pegged stablecoins. Paxos, the issuer of the stablecoin, ensures its stability through a robust system of collateralization and regular audits. The stablecoin is backed by a reserve of USD held in segregated accounts, which guarantees a 1:1 ratio between the stablecoin and the underlying USD. Regular audits are conducted to verify the reserve holdings and ensure transparency. These measures provide users with confidence in the stability and reliability of the USD-pegged stablecoin.
  579145