Binance, the world’s largest cryptocurrency exchange by traded value, continues to expand stablecoin options for its clients, this time listing PAX tokens, which is a cryptocurrency pegged to the US Dollar. The Paxos Standard Token (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.
Binance has added many non-volatile coins to its platform over the past few weeks, most recently supporting Circle’s USDC. Clients can use stablecoins to cash out of digital assets more quickly than if they were to convert to dollars.
Overall, the new listing comes in the midst of an explosion of new stablecoins, which are used as a proxy for physical money on many cryptocurrency exchanges.
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PAX will be listed as a base currency, which users are using to buy the other quoted cryptocurrency. Beginning immediately, Binance enabled support for trading on the stablecoin against its native coin (BNB), Bitcoin (BTC), Ethereum ( ETH ), Ripple (XRP), EOS and Stellar Lumens (XLM), with additional base pairs coming in the future.
A Regulated Stablecoin
The new listing also comes amid a mass exodus from Tether, which Binance has been using as a base trading pair against Bitcoin. Circle’s New York BitLicense will offer a fully audited alternative, in contrast to Tether which has been the subject of controversy and regulatory scrutiny due to lingering questions about its cash reserves.
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 regulatory approval from the New York State Department of Financial Services.
Speaking about the new options, Binance said in a statement: “Now, you can see the prices of BTC, ETH, and other cryptocurrencies in PAX, so you’re essentially seeing their value in terms of USD. That’s because PAX is the most stable dollar-backed stablecoin there is. Additionally, verified customers can always redeem PAX 1:1 for US dollars directly from Paxos, same day, with zero fees.”