Enterprise-backed blockchain platform Ontology (ONT) main goal is to release a version of the regulated USD-backed Stablecoin Paxos Standard (PAX) on its blockchain. The main purpose of the merger is to issue up to 100 million of its PAX tokens, pin 1:1 on the US dollar, on the latter's blockchain network beginning from the next month. The company declared in a press release on April 27.
Paxos standard is a regulated U.S. dollar-backed by stablecoin and was released in the last September. It is presently available on the Ethereum blockchain as an ERC-20 token, however, there will be a choice now.
According to the press release, the new token (PAXO) will be based on the Ontology’s OEP-4 token standard which will allow atomic swaps between the Ontology-based main blockchain and other blockchains. The release will allow various institutions and individuals to transact in fiat-pegged tokens in the Ontology ecosystem.
Andy Ji, who is the co-founder of Ontology described that Paxos will still remain your entity for Know-your-customer process and U.S. dollar deposit and withdrawal, it authorizes Ontology to issue PAX on its blockchain via the partnership.
He stated:
“The launch of PAX on the Ontology blockchain will greatly accelerate real business applications on Ontology, create more success stories of traditional businesses shifting to distributed businesses, and provide enterprise partners and institutional investors with a regulated, reliable, and safe gateway to the world of digital assets.”
The firm ensures that PAX "is first regulated USB stablecoin which ensures open auditing, asset safety and is supported by a large number of exchanges." All PAX USD reserves are allegedly held in the independent accounts of FDIC-insured banks present in the United States, as per the Ontology's press release.
Recently, Stablecoin operator Tether replied about its allegations that their funds were used to cover $850 loss done by its sister firm, Crypto Exchange Bitfinex. The statement stated by the firm ensures that court filings of the latest New York Attorney Journal Office which is "puzzled with wrong assertions."
Earlier, Ontology Foundation has released a public blockchain network in June 2018, which is focused to provide a high volume of fast and cheap transactions.