Crypto payments provider BitPay is now offering the option for merchants to receive settlement in PAX tokens, which is a stablecoin pegged to the US Dollar. The PAX tokens are both regulated and backed at a token-to-dollar ratio that is appealing to traders that prefer more consistency from their investments.
The move expands BitPay’s non-volatile settlement solutions for its clients who can use it to cash out of digital assets more quickly than if they were to convert to dollars. On the merchant side, Bitpay has always allowed clients to settle in Bitcoin and Bitcoin Cash, but the firm has recently added options to settle in multiple stablecoins, including Circle USDC and Gemini Dollar.
The listing comes in the midst of an explosion of new stablecoins, which are used as a proxy for physical money on many cryptocurrency exchanges.
“This new settlement option is particularly valuable for overseas businesses that have limited access to a currency as stable as the US dollar,” says the company.
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Both firms regulated in New York
Paxos issues and redeems PAX tokens one-to-one against US dollars, offering a coin that is backed by US-domiciled FDIC-insured banks. Paxos Standard was the first cryptocurrency operator to secure a regulatory approval from the New York State Department of Financial Services.
BitPay was also granted a so-called Virtual Currency License by the New York State Department of Financial Services (NYDFS), becoming only the eighth such firm to win approval to operate in the state. The company specializes in setting up merchant accounts to accept cryptocurrency payments.
Crypro firms gain the license after the NYDFS scrutinizes their anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies.
Speaking about the new options, BitPay said in a statement: “Within just two months of launch, PAX has already become the most traded stablecoin that is backed 1:1 by the dollar. This integration with BitPay marks the start of PAX usage in real-world commerce.”