Ontology (ONT) announced that it will launch a regulated stablecoin, Paxos Standard (PAX), on the Ontology blockchain. The stablecoin would be launched in May 2019 and it will make full use of application scenarios on an Ontology (ONT) partner project (Decentralized Finance) beyond exchanges. This is likely to bring obvious improvement to ONT, both in market value and price stability.
Paxos Standard will continue to use PAX as its ticker in line with Ontology’s OEP-4 token standard, and it will enable atomic swaps between the Ontology-based main blockchain and blockchain network, allowing individual and institutional users run fiat pegged business in the Ontology ecosystem.
The stablecoin issuer, Paxos, through its partnership with Ontology, will issue about 100 million of its tokens, on the blockchain network of the latter when the official release is due.
Unlike Tether and other stablecoins that are registered Money Services Businesses (MSB), PAX is authorized by the New York State Department of Financial Services (NYDFS), and it was launched on 10th September, 2018.
PAX is the first regulated USD stablecoin that makes auditing transparent and supported by a lot of exchanges, and this makes it a stable digital dollar. Ahead of Tether, PAX stablecoin can always guarantee its worth as $1.
As an addendum, top US audit firms are involved in auditing PAX on monthly basis, creating consistency between the amount of USD in the account and the PAX in circulation.
The team behind the Ontology (ONT) blockchain network has been up and doing with scaling up and realizing business applications since the release of its MainNet in June 2018. Ontology (ONT) is also proud to have rapid product duplication, constant community growth and offers a unique and easy to access platform for blockchain developers.
The CEO of Asia for Paxos, Rich Teo opined that the launching will enhance PAX to keep meeting the usual needs of digital asset communities.
Read Teo statement below;
“We are pleased to announce that the Ontology Foundation has chosen PAX as the stablecoin to launch on their chain, and we believe PAX can offer more business application scenarios for Ontology. This news shows how PAX can continue to meet the ever-changing needs of digital asset communities and Paxos’ dedication to advancing innovation in virtual currencies”.
Co-Founder of Ontology, Andy Ji also added that “The launch of PAX on the Ontology blockchain will greatly accelerate real business applications on Ontology, create more success stories of traditional businesses shifting to distributed businesses, and provide enterprise partners and institutional investors with a regulated, reliable, and safe gateway to the world of digital assets”
Benefits of Stablecoin
The meaning of stablecoin can be inferred from the word stable. It can be simply termed as a cryptocurrency that has low volatility against the world’s most notable centralised currencies such as US dollar, Euro, etc., giving it the ability to dispense enormous benefits for a decentralised internet.
Stablecoin can also be referred to as a digital currency with a fixed (stable) price. A Greater number of use cases are enabled by any reliable stablecoin than what is seen on the blockchain these days.
Stablecoin comes with utility that makes investors not to worry about the instability of their cryptocurrency in the market when deciding to make a purchase.
So, general adoption of stablecoin in the crypto sphere is expected to deal with volatility of cryptocurrency market, which would bring in more liquidity and convince big businesses around the world to invest. This would concurrently bring the ever awaited global adoption.