Paxos was launched in September 2018 by the Paxos Trust Company, approved and regulated by the New York State Department of Financial Services.
Paxos Standard token, an ERC20 stablecoin built on Ethereum's blockchain, was created to offer a digital alternative to the U.S. dollar. It can be used for transacting settlements and is fully redeemable directly through Paxos.com -- In exchange for $1 USD, 1 PAX is issued. Similarly, on the redemption side, 1 PAX can be redeemed for $1 USD. The exchange will always be one-to-one.
Upon redemption, PAX tokens are immediately removed from the supply; PAX are only in existence when the corresponding dollars are in custody.
Paxos works with a third-party, independent public accounting firm to monthly review and attests that Paxos Standard tokens are fully backed by actual U.S. dollars. Additionally, the Paxos Standard smart contract has been audited by blockchain auditor (Nomic Labs) to ensure that the code is solid and operates the way it is supposed to.