Paxos Leads the Digital Asset Industry by Becoming the First Issuer to Disclose Full Monthly Reserve Assets Backing USDP and BUSD Regulated Stablecoins

Paxos will provide an unprecedented level of disclosure for digital assets, consistent with federally required disclosures of the most conservative regulated products

NEW YORK, July 8, 2022 /PRNewswire/ — Paxos, the leading regulated blockchain infrastructure platform, has disclosed the specific financial instruments supporting its USDP and BUSD regulated stablecoins. Going forward, Paxos will provide this detailed information on a monthly basis in addition to its attestations. These reports provide the CUSIP of all instruments backing USDP and BUSD, showing that Paxos only backs its stablecoins with cash, overnight loans collateralized only by US Treasuries and Treasuries American with a maturity of less than 90 days. Monthly reserve reports are available on the Paxos website.

As a trust company approved by the New York State Department of Financial Services (“NYDFS”), Paxos is legally required to hold all regulated stablecoin reserves in fully segregated bankruptcy remote accounts and only in cash and cash equivalents. Stablecoins issued by Paxos have and always will be fully backed by one dollar. This design ensures that stablecoin holders will still be able to access their funds and redeem their stablecoins, as the assets are not mixed with Paxos enterprise funds. Additionally, Paxos cannot change the composition of its reserves without explicit approval from the NYDFS. New monthly reserve reports underscore Paxos’ commitment to transparency, trust and full dollar support. No other stablecoin issuer provides this level of detail and full US dollar support.

Charles Cascarilla, CEO and co-founder of Paxoscommented, “The only way to build trust in stablecoins and grow adoption of this important technology globally is to continue to embrace strong oversight and provide unprecedented transparency. Our stablecoins are a cash-backed dollar and equivalents and these enhanced disclosures underscore that point. Paxos has always offered the most secure US dollar-backed stablecoins.”

Recent volatility in the crypto markets demonstrates the importance of the full 1:1 dollar support for stablecoins and oversight by a lead prudential regulator. While many companies claim to offer stability and security, without regulatory oversight from a lead prudential regulator, consumers cannot be assured that their funds and assets are safe, fully segregated and safe from bankruptcy. The NYDFS recently released advice on stablecoins which provides a fundamental framework for the structure and issuance of stablecoins. Notably, Paxos stablecoins adhere to these regulatory guidelines.

To learn more about Paxos and its infrastructure and regulated products, visit www.paxos.com.

About Paxos

Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation of a new open financial system that can work faster and more efficiently. Today, billions of dollars are locked away in inefficient and outdated financial plumbing, inaccessible to millions of people. Paxos is reforming the financial system to allow assets to move instantly anywhere in the world, anytime, reliably.

Paxos uses technology to tokenize, hold, exchange and settle assets. He builds enterprise blockchain solutions for institutions such as PayPal, Interactive Brokers, Mastercard, MercadoLibre, Nubank, Bank of America, Credit Suisse and Société Générale. Paxos is a top-funded fintech company with over $540 million raised from top-tier investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a holistic approach to modernizing the financial system.

Media Contact: Becky McClain, [email protected]

SOURCEPaxos