How It Works
Paxos holds USDP reserves exclusively in cash and US Treasury bills in segregated trust accounts at US-regulated institutions. Paxos is legally required to hold reserves separately from operational funds under NY trust law. Monthly attestations are published by Withum. Users can mint and redeem USDP directly with Paxos through the Paxos API (institutional) or via exchanges. Paxos can freeze USDP on-chain in compliance with NYDFS directives and law enforcement requests. The token follows the ERC-20 standard on Ethereum with SPL on Solana.
Backing Type: Fiat-Backed
Fiat-backed stablecoins are collateralized by real-world assets held in bank accounts or custodied trust accounts — typically US dollars, Treasury bills, or cash equivalents. The issuer is responsible for maintaining 1:1 reserves and publishing regular attestations.