Last Friday, Ontology, a Singapore-based public blockchain that supports collaboration amongst chain networks with its various protocol groups, made its plan public about the launching of the Paxos Standard (PAX), a digital currency that is backed 1:1 with U.S dollars, on its blockchain.
Through this partnership, Ontology plans to explore the application layout on Decentralized Finance, another partner project of the blockchain, beyond exchanges. According to the announcement, the launch of the PAX token on Ontology is set to take place next month, in May 2019.
Per the official announcement, the resultant token of the Ontology and Paxos collaboration will be based on Ontology’s OEP-4 token standard, and it will continue to keep PAX as its ticker. The firm plans to launch 100 million PAX (initially to meet demand) onto the Ontology network. The newly launched token will be beneficial for individuals as well as businesses that are using Ontology’s Token (ONT) to rely on fiat currencies.
The release notes,
“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.”
It is worth noting that Paxos Standard was launched in September last year after the New York Department of Financial Services (NYDFS) sanctioned Paxos Trus Company for a stable-coin, pegged to the U.S dollars. The currently available PAX token is based on the Ethereum’s blockchain as an ERC-20 token.
The token is already supported by a large number of exchanges as well as ensures open auditing by top tier auditing firms monthly, to ensure the safety of all of its deposits being kept at the registered, insured banks in the country.
As one can imagine, Rich Teo, Co-Founder and Head of Asia for Paxos Trust, seemed enthusiastic about this partnership as the outcome would undoubtedly help them with their vision of transforming the digital currencies with advanced innovation.
“This news shows how PAX can continue to meet the ever-changing needs of digital asset communities and Paxos’ dedication to advancing innovation in virtual currencies”.
Talking about the partnership, Co-Founder of the Ontology Network, Andy Ji stated that although Paxos has permitted Ontology to launch PAX on the network’s blockchain, still the firm will be responsible for the KYC (Know Your Customer) process and U.S dollar transactional dealings. In his words:
“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.”
At the time of writing this piece, according to the CoinMarketCap, Paxos Standard Token is available for trade at 1.01 USD having a market capitalization of $155.073 million and is ranked at 44th spot among all the cryptocurrencies.
Image courtesy of Pixabay.
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