What Is USDP?
USDP is a stablecoin issued by Paxos Trust Company. It is backed by the US dollar on a 1:1 ratio, giving it stability in value.
Background
Charles Cascarilla and Rich Teo founded Paxos in 2012.
How It Works
Institutional investors or businesses can create or redeem USDP tokens by depositing or withdrawing US dollars from Paxos. These tokens can then be deposited on supported exchanges where they can be traded for other cryptocurrencies.
Paxos, being a trust company, operates under high regulatory oversight. This provides customers with a high level of protection for their funds. The company’s reserves are held in US Treasury bills and FDIC-insured banks and audited by top-ranking firms monthly. This ensures transparency in the management of funds.
Key Takeaways
- USDP is a stablecoin issued by Paxos Trust Company.
- It is backed by the US dollar on a 1:1 ratio, providing stability.
- Institutional investors or businesses can create or redeem USDP tokens by depositing or withdrawing US dollars from Paxos.
- Paxos operates under high regulatory oversight, providing high protection for customers’ funds.
- The company’s reserves are held in US Treasury bills and FDIC-insured banks and audited by top-ranking firms monthly.
