Ontology is to launch the Paxos Standard (PAX) stablecoin, a cryptocurrency backed 1:1 with U.S. dollars, on its blockchain.
The launch will make it easier for individuals and businesses using Ontology’s ONT token to transact in fiat-pegged tokens, Ontology announced Friday. The firm told CoinDesk that it plans to add up to 100 million PAX to Ontology's network, depending on demand.
Paxos Standard (PAX) is a regulated U.S. dollar-backed stablecoin and was launched last September. It is currently available only on the ethereum blockchain as an ERC-20 token, but now there will be a second option.
The new version of PAX would have the same ticker symbol and will be based on Ontology's OEP-4 token standard.
Ontology co-founder Andy Ji told CoinDesk that while PAXOS will still be the entity for conducting know-your-customer process and U.S. dollar deposit and withdrawal, it authorized Ontology to issue the PAX on its blockchain through the partnership.
The announcement comes on the heels of the New York attorney general's allegation that the Bitfinex exchange, which shares management and owners with stablecoin issuer Tether, lost $850 million of corporate and client funds and subsequently used Tether's reserves to secretly cover the shortfall.
Ontology emphasized that unlike Tether, PAX ensures open auditing and all its deposits in U.S. dollars are kept in independent accounts at Federal Deposit Insurance Corp.-insured banks in the U.S.
Singapore-based Ontology Foundation launched its public blockchain network last June, aiming to provide a high volume of fast and cheap transactions.
Edit (09:40 UTC, April 29, 2019): This article has been amended to clarify that Ontology is behind the launch, not Paxos.
Paxos image via Shutterstock
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