Stablecoin issuer Paxos will partner with Ontology to issue up to 100 million of its PAX tokens, pegged 1:1 to the U.S. dollar, on the latter’s blockchain network starting from next month.
The launch will make it easier for individuals and businesses using Ontology’s ONT token to transact in fiat-pegged tokens, Ontology announced Friday.
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 follow the Ontology blockchain’s OEP-4 token standard.
Ontology co-founder Andy Ji explained that while PAXOS will still be the entity for conducting know-your-customer process and U.S. dollar deposit and withdrawal, it authorizes Ontology to issue the PAX on its blockchain through the partnership.
“The launch of PAX on the Ontology blockchain will greatly accelerate real business applications on Ontology, create more success stories of traditional businesses shifting to distributed businesses, and provide enterprise partners and institutional investors with a regulated, reliable, and safe gateway to the world of digital assets.”
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.