The Paxos Standard Token (PAX), a stablecoin whose value is pegged to that of the US dollar at a 1:1 ratio, has reportedly seen over $10 billion worth of transactions since its launch on September 10 of last year.

According to Sludgefeed, data the cryptocurrency’s issuer, the Paxos Trust Company, shared with it the PAX token has been seeing a weekly transaction rate of nearly $580 million, and weekly redemptions of $16.7 million. A total of $394 million worth of PAX tokens have been issued.

The team behind the cryptocurrency claimed that since its launch, it has “consistently been at the top of volume charts, indicating that PAX is the king of stablecoins.” The team was quoted as saying:

When it comes to stablecoins, the transactional volume is more important than market cap because it shows real usage, confidence, adoption, and liquidity, which gives buyers and sellers more options.

Paxos’ growth is partially attributed to it quickly being listed n Binance, the number one cryptocurrency exchange by trading volume. The stablecoin, along with a few others including the Gemini Dollar (GUSD), were created as controversies surrounding Tether (USDT) kept growing.

Paxos’ stablecoin is approved and regulated by the New York State Department of Financial Services (NYDFS), meaning it’s subject to stringent requirements that help stop the cryptocurrency from being used for illicit purposes.

This means the stablecoin has a controversial backdoor that allows the company behind it to freeze funds temporarily or permanently, even without giving users a notice in advance. The currency’s legal documentation reads:

We may freeze, temporarily or permanently, your use of, and access to, PAX or the U.S. dollars backing your PAX, with or without advance notice, if we are required to do so by law, including by court order or other legal processes.

Reacting to the backdoor, some in the cryptocurrency community revealed they believe it goes beyond the typical know-your-customer (KYC) compliance requirements, although a Paxos spokesperson noted the backdoor is there for compliance.

Despite the controversy, the stablecoin has grown to become one of the largest ones, with a market cap well over $120 million. It falls behind Tether’s USDT, TrueUSD (TUSD), and Circle’s USDC stablecoin.

Featured image courtesy of Paxos