This Tuesday, Walter Hessert, strategy head of Paxos, published a blog post stating that the blockchain infrastructure firm has now rebranded its Paxos standard stablecoin to “Pax dollar” under the ticker USDP. According to Hessert, the firm believes that the new USDP ticker identifies the stablecoin better as an entity backed by USD. He then clarified that USDP reserves would be 100% backed by cash and cash equivalents, adding that the USDP ticker makes it very self-explanatory.
Hessert’s blog post further noted that the rebranding to USDP represents a crucial step towards Paxos’ goal to render regulated digital dollars abundant and worldwide. He says that stablecoins can transform the overarching global payments ecosystem, and Paxos firmly believes that USDP is the regulated solution that may deliver just that.
This rebranding announcement closely follows Circle’s announcement that USDC, the top two stablecoin in the world today via market capitalization, will now be fully backed by cash and short-term US Treasurys as early as next month.
Speaking of stablecoins, it is worth noting that a specific type of mistiness still envelops the composition of the reserves of Tether, the provider of the top stablecoin today, USDT, with a market capitalization of over $65 billion. This is then further muddied by a particular breakdown report last May that reveals that about 49% of USDT tokens were backed by unidentified commercial paper.