Paxos to issue up to 100M of PAX tokens on Ontology blockchain

Blockchain startup Paxos is teaming up with Ontology to issue up to 100 million of its stablecoin, PAX token, on the Ontology blockchain, CoinDesk reported.

Last September, the New York State Department of Financial Services (NYDFS) authorized Paxos Trust Company to offer stablecoin, pegged to the U. S. dollar. The company announced “Paxos Standard” (or PAX), a stablecoin fully collateralized 1:1 by the U.S. dollar.

Ontology said that it expects to launch the PAX token on its blockchain network in May. The token will be based on Ontology's OEP-4 token standard and continue to use “PAX” as its ticker.

“PAX will enable atomic swaps between the Ontology-based main blockchain and blockchain network and make it easier for individuals and institutional partners to do business pegged to fiat in the Ontology ecosystem,” the release said.

Ontology co-founder Andy Ji said that while Paxos has authorized Ontology to issue the PAX on its blockchain, it will still be the entity responsible for conducting know-your-customer (KYC) process and U.S. dollar deposit and withdrawal.

“The launch of PAX on the Ontology blockchain will greatly accelerate real business applications on Ontology, create more success stories of traditional businesses shifting to distributed businesses, and provide enterprise partners and institutional investors with a regulated, reliable, and safe gateway to the world of digital assets,” he said.

Ontology said that PAX ensures “open auditing, asset safety, and is supported by a large number of exchanges” unlike Tether, which cannot guarantee its token is always worth $1. Recently, the New York Attorney General’s office has alleged that cryptocurrency exchange Bitfinex unlawfully engaged with Tether to cover-up an $850 million loss.

In the case of PAX, all the deposits in USD are kept in independent accounts of FDIC insured banks registered in the US, ensuring the safety of PAX tokens. Monthly audits of PAX are done by top US audit firms to ensure the amount of USD in the accounts is consistent with the PAX in circulation.