Paxos Trust

The main business areas and products include:

1. Regulated Stablecoin Issuance:

Paxos is one of the few companies that have obtained regulatory approval to issue stablecoins. Its main issued stablecoins include: Paxos Standard (USDP, formerly PAX): A stablecoin pegged 1:1 to the US dollar, fully backed by US dollar cash and cash equivalents, and regularly subjected to independent audits. Paxos Gold (PAXG): A token that is 1:1 backed by physical gold, with each PAXG representing one ounce of physical gold stored in the London vault. PAXG allows users to have digital ownership of gold while enjoying the liquidity of blockchain assets. PayPal USD (PYUSD): Paxos is the issuer and custodian of PayPal's stablecoin PYUSD, which further expands its business in the mainstream payment sector. Business Model: By issuing and managing these stablecoins, Paxos earns fees from the minting and redemption of stablecoins, as well as interest income generated from its reserve assets. The widespread adoption and high circulation of stablecoins are key to its profitability.

2. Crypto Brokerage Services:

Paxos provides cryptocurrency trading and custody infrastructure for enterprise clients, enabling these businesses to offer cryptocurrency services to their end users without having to deal with complex regulatory and technical challenges themselves. Main clients: Including well-known financial institutions and technology companies such as PayPal, Venmo, and Interactive Brokers. Paxos acts as the backend for these companies, handling the buying, selling, clearing, and custody of cryptocurrencies. Business Model: Paxos profits by charging its enterprise clients transaction execution fees, custody fees, and licensing fees for providing technical solutions. This B2B2C (business-to-business-to-consumer) model allows it to leverage the large user base of its partners.

3. Tokenization and Asset Digitization:

Paxos is committed to tokenizing traditional assets (such as stocks, bonds, commodities, etc.) to enable trading and settlement on the blockchain. This includes its exploration in the field of securities settlement, such as pilot projects for blockchain-driven securities settlement in collaboration with banks like Credit Suisse and Nomura. Business Model: By providing tokenization technology and platforms, Paxos can charge setup fees, maintenance fees for asset tokenization, as well as clearing and settlement fees for future transactions. This represents the future direction of financial market infrastructure.

4. Commodities Settlement:

Paxos is also exploring the use of blockchain technology to improve the settlement process in commodity markets, enhancing efficiency and reducing risk.

Stablecoins: Paxos Standard (USDP, formerly PAX): As a stablecoin pegged 1:1 to the US dollar, the issuance and circulation of USDP have increased the dollar liquidity in the cryptocurrency market. It provides traders with tools to hedge against volatility and to quickly enter and exit fiat currency in the cryptocurrency market. The transparency and regulatory compliance of USDP make it a reliable choice for institutions and individuals for value storage and transfer within the cryptocurrency ecosystem. Paxos Gold (PAXG): PAXG is a token that is 1:1 backed by physical gold. It brings the value of the traditional gold market into the cryptocurrency space, providing investors with digital ownership of gold. The existence of PAXG makes gold trading more convenient, reduces the costs of storing and transferring physical gold, and allows investors to hedge against inflation or use it as a safe-haven asset in the cryptocurrency market. The value of PAXG is directly linked to the price of gold, so its market performance is influenced by gold prices. PayPal USD (PYUSD): As a stablecoin issued by PayPal, PYUSD is issued and custodied by Paxos. The launch of PYUSD aims to bring the convenience of cryptocurrency into mainstream payments and commerce. With PayPal's large user base, PYUSD has the potential to significantly increase the adoption rate of stablecoins and promote the use of cryptocurrency in everyday transactions. The success of PYUSD will directly impact the landscape of the stablecoin market and may encourage other large financial institutions to enter the stablecoin space. Global Dollar (USDG) and Lift Dollar (USDL): Paxos is also actively launching other stablecoins, such as the Global Dollar (USDG) aimed at the European market and the Lift Dollar (USDL) with yield features. These stablecoins are designed to meet the specific needs of different regions and user groups, further expanding Paxos's influence in the stablecoin market. Impact Method: Paxos's brokerage services enable these mainstream financial platforms to seamlessly integrate cryptocurrency features, significantly broadening market access for cryptocurrencies. It lowers the barriers for traditional financial institutions to enter the cryptocurrency space, promoting institutional adoption and trading volume growth of mainstream coins like Bitcoin and Ethereum. Paxos plays a key "connector" role in this process, linking traditional finance with the world of digital assets.