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Gemini Faces Competition As Paxos Releases New, Regulated Stablecoin Gemini Faces Competition As Paxos Releases New, Regulated Stablecoin

Gemini Faces Competition As Paxos Releases New, Regulated Stablecoin

Right on the heels of the Winklevoss twins’ enterprise announcement that Gemini will be matching cryptocurrency and fiat finances dollar-for-dollar with its new stablecoin, New York-based Paxos joins the realm of federally regulated crypto assets.

Right on the heels of the Winklevoss twins’ enterprise announcement that Gemini will be matching cryptocurrency and fiat finances dollar-for-dollar with its new stablecoin, New York-based Paxos joins the realm of federally regulated crypto assets.

Introducing Paxos Standard

With approvalย from the New York State Department of Financial Services, Paxos has been greenlit to launch its newย stablecoin, Paxos Standard (PAX), which will be used to liquidate cryptocurrency assets for instant transaction approval. Paxos, like Gemini, is a trust company; however, Paxos claims to be more technologically secure than any other stablecoin, such as GUSD. Both are fiduciary account holders qualified for disseminating funds, which is where competition finds its weak spot.

Unlike Gemini, the latter offers no fees as part of its infrastructure, but Gemini has two custody solutions for digital assets. By default, depository accounts are commingled and stored in Geminiโ€™s Cold Storage System. Institutions working with Gemini are encouraged to apply for segregated custody accounts because such accounts (hedge funds, mutual funds, exchange trades, etc.) are typically required by law to be stored with a licensed custodian. Segregated accounts at Gemini come with annual fees of .09642 percentโ€“a minimum of $100,000 per year and a liquidation rate of about two business days.

Paxos CEO and co-founder Charles Cascarilla said PAX gives financial markets more power with fully collateralized assets, blockchain security and regulation input, adding that the four-letter-word of cryptocurrency, โ€œvolatility,โ€ is removed from the narrative.

In a statement, Cascarilla said:

โ€œWe believe that Paxos Standard represents a significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy.”

Furthermore, trading is done via itBit, a custody service that also works in OTC exchanges. Tokens are par with Ethereumโ€™s ERC20 protocol and are destroyed instantly upon redemption.

As for which company the spirit award for incentives will be given to, PAX is offering early applicants limited free trading options and $75 to get started.