1. Overview

• Stablecoin: USDP

• Issuer: Paxos Trust Company, a regulated financial institution under New York Department of Financial Services (NYDFS)

• Blockchain: Available on Ethereum, Solana, BNB Chain, Avalanche, and Polygon

• Launch: September 2018 (originally launched as Paxos Standard, rebranded to USDP)

• Type: Fiat-backed stablecoin, redeemable 1:1 for USD

2. Use Case

USDP is used as a stable and regulated digital dollar for:

• Secure on/off ramps for retail and institutional users

• Efficient cross-border settlements

• Reliable collateral in DeFi applications

• Integrations in tokenized assets and payments ecosystems

3. Governance & Compliance

• Issued by Paxos Trust Company, regulated by the NYDFS

• USDP reserves are held in segregated accounts and consist of FDIC-insured deposits, short-term U.S. Treasuries, repos, and money market funds

• Monthly attestation reports are published by WithumSmith+Brown, ensuring reserve backing transparency

• Legal framework and reserve protections are outlined in USDP’s Terms & Conditions

4. Customer Feedback & Reputation

• No Trustpilot presence (not a consumer-facing product)

• Rated highly by institutional analysts such as Bluechip, which praised its clear governance, segregated reserves, and legal structure

• USDP is considered one of the most trusted regulated stablecoins, especially when compared to less-transparent peers like USDT

5. CU Background Check

• Paxos was founded in 2012 by Charles Cascarilla and Rich Teo

• The company holds a New York trust charter and has regulatory partnerships with PayPal, Binance, and others

• According to S&P Global, USDP reserves are rated “Strong” with low credit risk exposure

• The circulating supply declined after MakerDAO removed USDP from its collateral list in 2023

6. Crypto-Economics

• USDP can be minted/redeemed directly 1:1 by institutional customers through Paxos

• Reserves are stored in highly liquid and low-risk instruments like U.S. Treasuries and insured deposits

• Due to its regulated nature, USDP experiences minimal price slippage and maintains a tight peg (typically around $1.00)

• Though circulation is smaller than USDC or USDT, USDP is well-integrated across exchanges and platforms

7. Backing & Value Stability

• USDP is fully backed 1:1 with segregated, bankruptcy-remote reserves

• Reserves include cash, FDIC-insured deposits, repo agreements, short-term U.S. Treasuries, and money market instruments

• Monthly attestations by Withum and oversight by NYDFS ensure user protection

• The reserve structure is one of the most legally robust in the stablecoin market

8. Final CyberFinance Compliance Rating

🟢 Final Rating: GREEN SIGNAL

USDP meets every Ratex42 compliance, transparency, and risk mitigation benchmark — making it one of the safest and most reliable stablecoins on the market.

📌 Ratex42 Summary

Pax Dollar (USDP) stands out for its regulatory clarity, legal soundness, and fully backed reserves. It is ideal for institutional investors, compliance-sensitive platforms, and stable collateral requirements across DeFi and TradFi.