Stablecoin issuer Paxos to integrate with Arbitrum network

by

As a seasoned analyst with over two decades of experience in the financial sector, I find this partnership between Paxos and Arbitrum intriguing. This move underscores Paxos’ strategic commitment to expanding its reach within the Ethereum ecosystem, especially considering it’s their first integration with a layer-2 network.

Paxos is planning to collaborate with Arbitrum, aiming to strengthen its position within the Ethereum network and make it easier for institutions to use digital assets that represent real-world items directly on the blockchain.

Paxos, a stablecoin issuer, plans to link up with Arbitrum (ARB), an Ethereum-based scaling solution, as part of a strategy to increase its presence within the Ethereum community. In a statement issued on September 10th, Paxos revealed this as their initial connection with a layer-2 network, highlighting their dedication towards promoting wider institutional acceptance.

The announcement indicates that this project is likely to make it simpler for physical assets to be incorporated into blockchain systems. This could increase the practicality and convenience of digital assets for businesses and organizations. As per the statement, Paxos hasn’t disclosed which particular products they intend to introduce on the network at this time.

As an analyst, I’m sharing some insights about Arbitrum, a platform launched in 2021. It has invested over $2.5 billion and currently boasts more than 520,840 active on-chain addresses, along with almost 700 decentralized applications. This data is sourced from DefiLlama. Excitingly, Arbitrum’s Fintech Partnership Lead, Luke Xiao, announced a significant collaboration with Paxos. According to him, Paxos has chosen to bring their stablecoin issuance and regulated tokenization platform to the Arbitrum network.

Paxos eyes stablecoin growth as SEC investigation ends

According to Walter Hessert, the leader of strategy at Paxos, by joining forces, they hope to speed up the process of bringing traditional assets onto the blockchain. He emphasized that within the next three years, the use of stablecoins will dramatically increase among both individual and institutional users.

Based on recent reports from crypto.news, this update comes after an investigation by the U.S. Securities and Exchange Commission (SEC) regarding Paxos and their Binance-branded stablecoin, Binance USD. Earlier in February 2023, the SEC sent a Wells Notice, alleging that Paxos was selling unregistered securities via BUSD and instructed them to halt minting operations.

The investigation associated with “Operation Choke Point 2.0,” aimed at restricting cryptocurrency service providers, has come to an end. This development allows Paxos to concentrate on their upcoming projects.

Read More

2024-09-10 17:14