On Tuesday (November 12), Paxos Trust Company (aka "Paxos") announced a new Fiat Gateway that "enables a seamless bridge between traditional and digital assets," and said that Binance is "the first to integrate it."
Paxos, "a regulated financial institution building infrastructure to enable movement between physical and digital assets," announced via a press release shared with CryptoGlobe that its new "Fiat Gateway" solution allows easy swaps between dollars and dollar-backed stablecoins. This allows a crypto exchange such as Binance can "use Fiat Gateway to accept dollar deposits and convert them into PAX for use on the platform."
Another Paxos solution, "Stablecoin Swap", "enables Paxos-powered stablecoins to be treated as interchangeable with each other, 1:1." Examples of Paxos-powered fiat-collateralized stablecoins are Paxos Standard (PAX) and Binance USD (BUSD).
Changpeng Zhao (aka "CZ"), Co-Founder and CEO of the first crypto exchange to adopt Paxos' Fiat Gateway, had this to say:
Paxos is a trusted partner that keeps innovating ways to make traditional and digital assets more interoperable. The new Fiat Gateway is the fastest, simplest U.S. dollar on/off ramp for our customers. We look forward to working more closely with Paxos to integrate additional solutions.
Although these two capabilities have been available for a while for users of the Paxos.com platform, new APIs allow them to be "integrated into other platforms":
Qualified businesses will be able to use these new tools directly for their own transactions as a first-party, or they can host the solutions as a third-party for their customers to utilize.
Charles Cascarilla, Paxos Co-Founder and CEO, stated:
We created these APIs so our technology can become more widely available and scalable. Our aim is to create financial infrastructure that others can utilize and build on, so together we can create a modern, open financial system.
Featured Image Courtesy of Paxos Trust Company