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Paxos is rebranding its stablecoin from Paxos Standard (PAX) to Pax Dollar (USDP) so it is more easily identifiable as a US dollar-backed token. The updated USDP smart contract will go live on August 31, 2021. PAX has always maintained reserves that are 100% cash or cash equivalents, which for Paxos means short-term Treasury bills.

Paxos will now disclose on a monthly basis the specific financial instruments backing its USDP and BUSD stablecoins, in addition to its attestations. These reports will provide the CUSIP numbers of all instruments backing USDP and BUSD, showing that Paxos only backs its stablecoins with cash, overnight loans secured only by US Treasuries, and US Treasuries with a less than 90 day maturity. As a Trust Company chartered by the New York State Department of Financial Services ("NYDFS"), Paxos is legally required to hold all regulated stablecoin reserves in bankruptcy remote, fully-segregated accounts and in only cash and cash equivalents.

Facebook's Novi digital wallet app is being rolled out a small pilot in the United States and Guatemala. With it, people can send and receive money instantly, securely, and with no fees. It will use the Pax Dollar (USDP) stablecoin through partnerships with Paxos and Coinbase. A small cohort of users in both countries will be able to download the Novi app on iPhone or Android devices, sign up with valid government-issued ID, and add money to their accounts with a debit card. According to CEO David Marcus, USDP was chosen because it's been operating successfully for over three years and has important regulatory and consumer protection attributes. He also made it clear that Novi's support for the larger-scale Diem project hasn't changed and they intend to launch Novi with Diem once it receives regulatory approval and goes live. https://www.novi.com/file/pilot-version-of-novi-now-available

Binance effectively banished USD Coin (USDC), the second-biggest stablecoin, from trading at its cryptocurrency exchange in favor of its own competing product. On Sept. 29, customers' holdings of USDC will be converted to Binance USD (BUSD). The same will happen with two smaller stablecoins: Pax Dollar (USDP) and TrueUSD (TUSD).  The action effectively removes USDC as a tradable asset on one of the most prominent perches in crypto, and creates a headache for Circle Internet Financial, USDC's issuer, as the company mulls an IPO.

S&P Global unveiled ratings for eight stablecoins. On a grading scale of one (very strong) to five (very weak) USDC, Pax Dollar (USDP) and Gemini Dollar (GUSD) scored all scored two strong), while Tether's USDT scored a four (constrained). USDT was penalized for its lack of transparency and for holding some higher risk assets. The ratings are based on an assessment of asset quality risks, including credit, market value, and custody risks, the degree of any risk mitigants like overcollateralization requirements and liquidation mechanisms, governance, legal and regulatory framework, redeemability and liquidity, technology and third-party dependencies, and track record.

Facebook's Novi launched its retail payment app yesterday (October 19) going with Paxos' USDP stablecoin as its transactional currency while it awaits regulatory approval for its own Diem stablecoin. However, almost immediately, US Senate Democrats addressed a letter to Facebook CEO Mark Zuckerberg questioning the company's credibility with crypto, and calling for the immediate discontinuance of the Novi pilot and a commitment not to bring Diem to market. Diem replied by clarifying that Diem is an independent organization with Facebook's Novi being just one of more than two dozen members of the Diem Association, so that Novi's pilot with Paxos is unrelated to Diem. The response went on to say that "When Diem comes to market [Diem] will do so having reflected the feedback of regulators from around the world and with confidence that Diem's payment system is secure, will protect consumers, and will combat financial crime."

Meta's WhatsApp has launched a pilot that lets a "limited number" of people in the US send and receive money instantly from within a chat using Pax Dollars (USDP) stablecoins. The feature is powered by Meta's Novi, digital wallet launched as a pilot six weeks ago. There are no fees for sending or receiving money, no limits on how often payments can be sent, and no fees to keep a balance in a Novi account or to withdraw it to a linked bank account.

In June 2022, the New York Department of Financial Services (NYDFS) issued formal guidance for NYDFS-approved stablecoin issuers, including upgrades to the amount and quality of information that issuers must provide to the public. With the new guidance, management's assertions must now be tested and published no later than 30 days after the end of the month, but also on one randomly selected business day during the month. Secondly, stablecoin issuers will be required to submit their internal controls to audit. However, the new regulations apply to Gemini dollar (GUSD) Binance USD (BUSD) and Paxos dollar (USDP).

"At face value, it's a vote of confidence for tokens like USDC and USDP, with Binance effectively stating that the value of those tokens are reliable enough to be allowed permanent 1-to-1 redemption with its own BUSD across withdrawals and deposits. Tether's USDT, the largest stablecoin by market value, was notably left out of the party."

"The global rise in interest rates is finally beginning to percolate into the stablecoin sector. One of the effects of this rise is that centralized stablecoins, which by default pay 0% to holders, are introducing backdoor routes for paying interest to large customers. While large stablecoin holders may be benefiting from this trend, small holders of stablecoins are being ignored. Small stablecoin holders need to unite. By working together through a StablecoinDAO, their bargaining power vis-a-vis the big stablecoin issuers improves. They may be able to negotiate the same interest payments that large stablecoin customers are getting... A StablecoinDAO would work along the same lines as a high-interest savings ETF. People would deposit their stablecoins -- USD Coin, Gemini Dollar, Binance USD, USDP, Tether, Dai -- into a smart contract. In return they'd get a new stablecoin called, say, UniteUSD, which would be redeemable on demand into any of the DAO's underlying stablecoins. UniteUSD itself would be useful. It could be used for purchases, deposited into smart contracts, or traded on decentralized exchanges and whatnot. StablecoinDAO would have the authority to swap one underlying stablecoin out with a new one. That potential threat would give the DAO the necessary leverage to negotiate interest payments."

Binance will cut Bitcoin (BTC) trading fees to zero worldwide as of 8 July 2022, to coincide with the exchange's five-year anniversary. It will remain in place until further notice. Zero-fee trading will cover the following 13 spot trading pairs: BTC/AUD, BTC/BIDR, BTC/BRL, BTC/BUSD, BTC/EUR, BTC/GBP, BTC/RUB, BTC/TRY, BTC/TUSD, BTC/UAH, BTC/USDC, BTC/USDP and BTC/USDT.

Paxos Trust will stop minting new Binance USD (BUSD) tokens starting from February 21, 2022 in accordance with directions and coordination with the New York Department of Financial Services (NYDFS). All existing BUSD tokens will remain fully backed and redeemable through Paxos until at least February 2024. Customers will be able to convert their BUSD tokens to Pax Dollar (USDP) another Paxos-issued stablecoin.

The New York Department of Financial Services (NYDFS) is reportedly investigating stablecoin issuer Paxos. The full scope of the investigation is unclear. Paxos' stablecoins include the Pax dollar (USDP) and Binance USD (BUSD). Paxos has been in the news recently over rumors the U.S. Office of the Comptroller of the Currency - a federal bank regulator - may ask it to withdraw its application for a full banking charter. Paxos has denied these rumors. Paxos also holds a virtual currency license (BitLicenses) issued by NYDFS.