We’re excited to share that Binance, the world’s largest crypto exchange, has now added the Paxos Standard (PAX) stablecoin as a base currency. PAX is the first regulated stablecoin to be a base currency on Binance, giving traders a trusted alternative to Tether (USDT).
What is a base currency and why does it matter?
A base currency is the currency we use to price other currencies. In the US, we use dollars daily, and think about the price of foreign goods in terms of dollars. And since it’s so stable and universally traded, the dollar is a global standard.
In cryptocurrencies, the primary base currency is usually bitcoin (BTC). However, it is difficult to think of prices in terms of BTC because it can be extremely volatile. If the price of a rare Cryptokitty was .5 BTC yesterday and .75 BTC today, we wouldn’t know if it’s because of the change in the price of the Cryptokitty or BTC.
But, if all crypto assets were priced in USD, we would have a clearer and immediate understanding of their value. That’s what PAX offers.
Most Stable Stablecoin, Fastest Redemptions
Now, you can see the prices of BTC, ETH, and other cryptocurrencies in PAX, so you’re essentially seeing their value in terms of USD. That’s because PAX is the most stable dollar-backed stablecoin there is. Additionally, verified customers can always redeem PAX 1:1 for US dollars directly from Paxos, same day, with zero fees.
Why is PAX the most trusted stablecoin?
PAX is backed 1:1 by US dollars held in FDIC-insured US banks, and a major auditing firm regularly ensures that these bank balances and token balances are consistent through monthly attestations. Paxos and PAX are both regulated by the New York State Department of Financial Services, so PAX operates under the highest regulatory regime and therefore greatest customer protections of any crypto asset.
Trade on Binance Today
Starting now, Binance customers can trade PAX for BNB, BTC, ETH, XRP, EOS and XLM, with additional base pairs coming in the future. Make sure to ask Binance if there’s a currency you’d like to see listed against PAX.
Visit Binance to start trading crypto priced in USD by using PAX today!
For more information, visit the Paxos Standard website.
Originally published at www.paxos.com on November 29, 2018.