Thanks to a newly established partnership with crypto startup Paxos, payments firm BitPay will allow its merchants to use PAX in settling transactions.
This year we have heard a lot of opinions on the advantages and disadvantages of the use of this or that cryptocurrency. While their high volatility is considered to be one of their main weak points, stablecoins backed by assets with a stable value are actively entering the game.
Their popularity is growing and a number of companies are working hard to expand the opportunities for their application. BitPay is now one of the major supporters of stablecoins.
Paxos and BitPay
As it has been recently announced, one of the most prominent crypto startups Paxos enterned in the partnership with payments firm BitPay to offer the Paxos Standard token (PAX) as a payment option for BitPay merchants.
PAX, that is backed 1:1 with the U.S. dollar, is considered to be the fastest growing stable cryptocurrency in the world. It was launched only this year in September, but it has already achieved a daily trading volume of $70,000,000 USD.
Being the first token that was issued by a regulated trust company, Paxos Standard got an approval of the New York State Department Financial Services.
Commenting their new partnership, Charles Cascarilla, CEO and co-founder of Paxos, said:
“We are thrilled to partner with BitPay to enhance the cryptocurrency ecosystem. Paxos Standard gives financial markets the power to transact in a fully USD-backed asset with the benefits of blockchain technology and oversight from financial regulators.This new partnership allows merchants to settle seamlessly into a digital asset they can use globally, actualizing the promise of cryptocurrencies.”
BitPay’s Vision
Bearing in mind that merchants may want to work with crypto but may be afraid of dealing with its high volatility, the team standing behind BitPay initially took a decision to give them a possibility to accept payments in cryptocurrencies and then settle them in fiat.
Nevertheless, the application of stablecoins can greatly facilitate all the processes for merchants. Technically, stablecoins may be considered to be security tokens, moreover, they are pegged to the U.S. dollar.
In October, CoinSpeaker reported that BitPay had provided its clients with an opportunity to receive settlement in Gemini Dollar (GUSD) and Circle’s USD Coin (USDC), pegged to the U.S. dollar. But now the firm is moving further.
Stephen Pair, co-founder and CEO of BitPay, expressed their excitement about the new possibilities that now their clients will get thanks to the partnership with Paxos:
“BitPay is fully committed to transforming the financial industry through blockchain technology. We are furthering this mission by allowing our customers around the world to receive fast and low-cost settlement using the USD-backed Paxos Standard token. Paxos shares our vision to empower businesses across the globe to secure payments that are fast and stable.”
Let us also remind that this year, crypto-payment processor BitPay has become the 8th company to receive a virtual currency license known as BitLicense from the New York Department of Financial Services.
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