Paxos has changed its Paxos Standard into the Pax Dollar, or USDP, according to a company blog post.
The company said in the post the USDP ticker will more readily identify the digital currency as a U.S.-dollar-backed token.
USDP is regulated and redeemable one-to-one for the U.S. dollar. USDP reserves are held 100 percent in cash and cash equivalents, and USDP “is a dollar,” according to the post.
Stablecoin use cases have been expanding, causing more demand for a regulated USD token, the post stated.
“Companies and consumers globally are entering crypto markets and need a safe, dollar-based solution,” according to the post.
Paxos noted in the post that society is at the beginning of a digital economy that will be open to anyone with a smartphone. USDP offers a way to drive efficient and instant transactions.
The company also touted in the post the ability it has to help bolster greater help for the unbanked and underbanked. Internet access is easy for most people, but the financial system is another story, with billions of people not having access to dollars, which are the world’s reserve currency. In addition, more than 1.7 billion adults around the world don’t have bank accounts.
With USDP, regulated digital dollars will become “ubiquitous,” helping the unbanked participate more easily in the economy, Paxos stated in the post.
Stablecoins have been gaining traction lately. Circle’s USD Coin (USDC), for example, has now been supported by cryptocurrency exchange Coinbase and network Centre. That means the USDC is now supported by both cash and short-term U.S. treasuries.
Read more: USDC Now Backed By Cash, US Treasuries
USDC is the largest stablecoin, with over $28 billion in market capitalization.
Cryptocurrency and blockchain technology have seen USDC as having an advantage over other digital currencies. The coin is seen not only as a digital dollar currency, but also as an electronic means to transact and store value.