Bitcoin payment platform BitPay is now going to allow payments with the Paxos Standard token (PAX), which it calls “the fastest growing stablecoin and the highest trading volume of any U.S. dollar-backed stablecoin.”
Although BitPay has previously integrated a number of different cryptocurrencies in its platform, such a widely trafficked stablecoin (the first of its kind to see support from the payment platform) holds certain distinct advantages, namely regulatory compliance and a stable value. Seeing as each PAX token represents $1, merchants and customers might feel more comfortable transacting the token in lieu of other cryptocurrencies, which are often subject to volatile price swings.
An important credential that comes with PAX’s name is its regulatory compliance, as it is “issued directly by a regulated Trust company and is approved for issuance by the New York State Department Financial Services.” Although there are several prominent stablecoins in the space, Paxos is the first to have this level of authenticity.
The release commented little on the future plans of BitPay’s new partnership, but the adoption of a prominent stablecoin is a logical next move. Stablecoins have recently been drawing the interest of the space, with more and more attempts to launch cryptocurrencies that can successfully maintain a peg with fiat.
Combining the most prominent sales platform for cryptocurrency with a fast-growing and well-regulated stablecoin is an advantageous match, one that would ideally attract more merchants and consumers to the platform now that they have a price stable cryptocurrency to transact.