Paxos, which calls itself “the first regulated Trust company with blockchain expertise,” received regulatory approval to offer a stablecoin, Paxos Standard, built on the Ethereum blockchain.

The New York State Department of Financial Services approved and will regulate the stablecoin, backed by the dollar on a 1-to-1 ratio, Paxos said in its press release.

Investors’ dollar deposits will be held “in segregated accounts at multiple FDIC-insured U.S.-domiciled banks,” the company added. “When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed. Tokens are only in circulation when the corresponding dollars are in custody.”

ThirtyK Staff
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