Enterprise blockchain platform Ontology on Saturday announced that it would launch up to $100 million worth USD-pegged stablecoin Paxos (PAX) on its blockchain.
Launched in September last year, PAX is available only on Ethereum’s blockchain as an ERC-20 coin. The coin was approved by the New York State Department of Financial Services (NYDFS) and the company claims that it is the first “first regulated USD stablecoin.”
Commenting on this development, Rich Teo, co-founder and head of Asia for Paxos Trust, said: “We are pleased to announce that the Ontology Foundation has chosen PAX as the stablecoin to launch on their chain, and we believe we can offer more business application scenarios for Ontology. 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.”
Available on two blockchains
On Ontology’s blockchain, PAX will maintain the OEP-4 token standard. The new version of the stablecoin, however, will have the same ticker as the one on Ethereum. In addition, the company will also introduce atomic swaps between Ontology-based main blockchain and other blockchains to make it easier for individuals and institutions to do business on Ontology’s ecosystem.
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“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,” Andy Ji, a co-founder of Ontology, added.
The Singapore-based company’s announcement came hours after the New York Attorney General’s office publicized the results of its ongoing investigation against iFinex, the operator of Bitfinex and Tether. The prosecutor revealed that the crypto exchange has used Tether’s cash reserves to cover up its $850 million in losses.
Considering the controversies associated with Tether, the market leader of stablecoins, PAX has ensured that it will follow a transparent approach and publish third-party audit reports from time-to-time.
Meanwhile, the stablecoin market is attracting major players to launch an array of fiat-pegged coins. TrustToken, the company behind USD-pegged TrueUSD, recently announced the launched an AUD-pegged digital currency – TrueAUD – and revealed that it is aiming to launch three more fiat-pegged coins by the end of this year.