Ontology to Launch Regulated USD-Backed Stablecoin PAX on its Blockchain

Enterprise blockchain platform Ontology (ONT) plans to launch a version of the regulated USD-backed stablecoin Paxos Standard (PAX) on its own blockchain. The company announced the news in a press release published on April 27.

Per the release, the new token (PAXO) will be based on Ontology’s OEP-4 token standard, which will enable atomic swaps between the Ontology-based main blockchain and other blockchains. This feature reportedly aims to make it easier for institutions and individuals to do business in fiat terms in the Ontology ecosystem.

The company claims that PAX “is the first regulated USD stablecoin that ensures open auditing, asset safety, and is supported by a large number of exchanges.” All the PAX USD reserves are reportedly held in independent accounts of FDIC-insured banks registered in the United States, the Ontology press release and the stablecoin’s previous press materials note.

Those features, according to the release, make PAX “a stable ‘digital dollar’ in every sense of the term, unlike Tether, which cannot guarantee its token is always worth $1.”

As Cointelegraph reported earlier this week, stablecoin operator Tether has responded to recent allegations that its funds were used to cover an $850 million loss at its sister firm, crypto exchange Bitfinex. The statement released by the company claims that court filings by the New York Attorney General’s office are “riddled with false assertions.”

Recently, news broke that United Kingdom-based cryptocurrency payment processor Wirex has partnered with blockchain protocol Stellar to release 26 stablecoins.

Ontology’s ONT is currently the 19th largest crypto by market capitalization. The coin is trading at $1.13 and is up less than 1% at press time.