The unique token (PAXO) will be built entirely on Ontology’s OEP-4 token standard, enabling atomic swaps between the major blockchain created using Ontology and other blockchains.
Nevertheless, this stablecoin was only be accessible on the Ethereum blockchain (as an ERC-20 token) and will shortly be on ONT blockchain from May. Ontology intends to release up to 100 million PAX tokens, pegged 1:1 to the dollar.
Last June, the Singapore-based Ontology Foundation introduced its public blockchain infrastructure to deliver a huge volume of fast, inexpensive transactions. This functionality is supposedly intended to facilitate business in the Ontology ecosystem for people and institutions.
The company says that PAX “is the first regulated USD stablecoin that ensures open auditing, asset security, and is supported by a large number of exchanges.”
All PAX USD deposits are subsequently retained in independent accounts of US-licensed FDIC-insured banks. Ontology co-founder Andy Ji stated that while PAXOS is entitled to perform know-your-customer procedures and U.S. dollar deposit and withdrawals, it authorizes Ontology to disburse PAX on its blockchain through the collaboration.
Ji said
“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”.
According to the announcement, these functionalities turn PAX into “a stable ‘digital dollar’ by all means, unlike Tether, which cannot assure its token is always worth $1.” Ontology stressed that unlike Tether, PAX guarantees transparent auditing and all its US dollar reserves are retained in exclusive accounts at Federal Deposit Insurance Corp.-covered banks.
The official statement comes in the wake of the New York Attorney General’s accusation that Bitfinex exchange, which shares executives and owners with stablecoin issuer Tether, recorded a loss of $850 million in corporate and customer money and then used Tether’s deposits to make up for the shortage secretly.
Tether answered back saying that documents filed in the court by the New York Attorney General’s office are “riddled with false claims.” Lately, reports surfaced that UK-based cryptocurrency payment platform Wirex collaborated with blockchain platform Stellar to unleash 26 stablecoins. The 19th-largest cryptocurrency, Ontology (ONT), is among today’s top gainers.
With more than 7% in the past 24 hours, the coin is progressively racing to surpass other prominent cryptocurrencies.