Paxos Set to Launch Stablecoin on Solana, Expanding USDP Reach in Crypto Market
Paxos, the tokenization and stablecoin platform, has announced its intention to expand its stablecoin issuance to the Solana blockchain. The company, which currently oversees the pax dollar (USDP), plans to make Solana-issued USDP available to the public from January 17, 2024.
This move represents the first expansion to a new blockchain for Paxos, as USDP was initially launched on Ethereum. The New York Department of Financial Services (NYDFS) has reportedly given its endorsement to Paxos' initiative, allowing public access to USDP via Solana by mid-January 2024.
According to Walter Hessert, Paxos Head of Strategy, "The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers."
In addition to USDP, Paxos has been overseeing the issuance of the stablecoin BUSD. However, the NYDFS directed the cessation of BUSD creation, resulting in a significant redemption of BUSD tokens in circulation over the past year. Paxos also collaborates with Paypal to oversee the issuance of the newly introduced PYUSD stablecoin.
Currently, USDP is the ninth largest stablecoin in terms of market capitalization, with a circulating supply of 369,946,003 tokens. USDP has received an A- grade from bluechip stablecoin rankings, recognizing its regulatory compliance and focus on customer protection. However, these rankings also note that the stablecoin has limited adoption in the wider crypto markets.
Over the past 24 hours, USDP has seen a global trade volume of $3,937,693, which is relatively modest compared to major stablecoins like tether (USDT) with a volume of $48.80 billion and usd coin (USDC) with a volume of $14.68 billion. According to statistics from coingecko.com, Binance is the most active exchange for USDP, with the most traded pairing being with USDT.
Paxos has disclosed the specific Solana smart contract address for USDP in its announcement. Currently, there are only 69 Solana-based USDP tokens in existence, with only five recorded transactions. The Solana explorer, Solscan.io, shows that these token test transfers took place eight days ago.
Raj Gokal, the co-founder of Solana, expressed his thoughts on Paxos' decision, stating, "Paxos' decision to bring stablecoin issuance to the Solana blockchain will showcase how Solana's high-performance network and low transaction fees can support regulated financial products and provide leaders like Paxos with new ways to scale and innovate."
What are your thoughts on Paxos expanding to Solana? Share your opinions in the comments section below.
Frequently Asked Questions
How does a gold IRA work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait to begin investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings will not be subject to tax when you are gone.
Your gold is passed to your heirs without capital gains tax. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done so, you'll be given an IRA custodian. This company acts as a mediator between you, the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 If you make more, however, you will get a higher interest rate.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
A small percentage may mean that you don't have to pay taxes. There are some exceptions, though. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Due to limited supplies, gold prices are subject to volatility. Physical gold is not always in stock.
How can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You will need to weigh each one before making a decision.
Bullion bars are easier to store than individual coins. However, you'll need to count every coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people like to keep their coins in vaults. Some prefer to keep them in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Can I have a gold ETF in a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
What Should Your IRA Include in Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. You don’t need to have a lot of money to invest. There are many ways to make money on silver and gold investments without spending too much.
You might also be interested in buying physical coins, such bullion rounds or bars. You could also buy shares in companies that produce precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Are You Ready to Invest in Gold?
It depends on how much you have saved and if gold was available at the time you started saving. If you are unsure of which option to invest in, consider both.
You can earn potential returns on your investment of gold. It is a good choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. Its value fluctuates over time.
This doesn't mean that you should not invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold is its tangible value. Gold can be stored more easily than stocks and bonds. It can also be carried.
Your gold will always be accessible as long you keep it in a safe place. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Don't buy too many at once. Start by purchasing a few ounces. Then add more as needed.
The goal is not to become rich quick. It is to create enough wealth that you no longer have to depend on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
finance.yahoo.com
bbb.org
forbes.com
cftc.gov
How To
Online buying gold and silver is the best way to purchase it.
Before you can buy gold, it is important to understand its workings. It is a precious metal that is very similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Every dollar spent on gold purchases, the buyer receives one gram of gold.
You should also know where to buy your gold. If you want to purchase gold directly from a dealer, then a few options are available. First, go to your local coin shop. You could also look into eBay or other reputable websites. You may also be interested in buying gold through private sellers online.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers charge a 10% to 15% commission per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great choice for investing gold as it allows you more control over its price.
Another way to buy gold is by investing in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
You can either visit a bank, pawnshop or bank to buy gold. A bank can provide you with a loan to cover the amount you wish to invest in gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks usually charge higher interest rates that pawn shops.
You can also ask for help to purchase gold. Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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By: Jamie Redman
Title: Paxos Expands to Solana Following NYDFS Nod, Widening Stablecoin's Horizon
Sourced From: news.bitcoin.com/paxos-expands-to-solana-following-nydfs-nod-widening-stablecoins-horizon/
Published Date: Fri, 22 Dec 2023 20:30:14 +0000
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