Paxos outlines digital assets disclosure regimen

Regulated blockchain infrastructure platform Paxos is detailing a digital assets disclosure regimen, disclosing specific financial instruments backing its USDP and BUSD stablecoins.

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“The only way we can build trust in stablecoins and grow the adoption of this important technology globally is by continuing to embrace robust oversight and providing unprecedented transparency,” Paxos CEO and Co-Founder Charles Cascarilla said. “Our stablecoins are a dollar backed by cash and equivalents, and these enhanced disclosures underscore this point. Paxos has always offered the safest US dollar-backed stablecoins.”

The firm is slated to provide monthly detailed disclosures in addition to its attestations. The reports provide the CUSIP of all instruments backing USDP and BUSD, demonstrating showing Paxos only backs its stablecoins with cash, overnight loans secured only by U.S. Treasuries, and U.S. Treasuries with a less than 90-day maturity.

Paxos indicated the stablecoins it issues have and always will be fully backed by a dollar. The design ensures stablecoin holders will always have access to while also being able to redeem their stablecoins because the assets are not co-mingled with Paxos corporate funds.

Per Paxos, no other stablecoin issuer provides the specifics and complete US dollar backing outlined in the firm’s digital assets disclosure plan.