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[Paxos]

USDP

Grade
A-
Date of Rating:
June 4th, 2023
Last Change:
June 4th, 2023
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
N/A
[M]
N/A
[I]
N/A
[D]
N/A
[G]
N/A
[E]
N/A
USDP Price
Last Update:
03/09/57572 00:40:00
$0.999907
Market Cap
$66,947,606
24h Volume
$14,787,080
Collater­alization
100%
Type of Peg
Fixed - To Fiat
Type of Backing
Fiat
Data provided by
Coingecko
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
-
[M]
-
[I]
-
[D]
-
[G]
-
[E]
-
Core Team
  • Hidden Name
  • Hidden Name
Audits
Native Chains
  • Chain
Links
Full Report
Scoring Guidelines
[S]
[M]
[I]
[D]
[G]
[E]
0.00
0.00
0.00
0.00
0.00
0.00
Paxos
A-
  • Paxos, the issuer of USDP, is regulated as a stablecoin issuer by the NYDFS, and therefore subject to stringent guidelines and monitoring requirements. USDP is substantially the same as its more widely used and popular sibling BUSD, but without the co-branding arrangement with Binance. 
  • USDP's reserves comprise short dated US Treasuries, highly liquid assets backed by US Treasuries and cash in fully segregated and bankruptcy-remote accounts.
  • Although USDP is designed to be institutional-grade, regulatory compliant and customer protection-focused, it is not widely used in the crypto markets. Therefore, USDP is most suitable for (a) making and receiving cross-border payments and (b) passive stablecoin holders who seek exposure to USD but cannot or do not want to hold USD in a bank account.

USDP's rating can be upgraded from A- to A by:
  • disclosing the names of its banks and custodians OR
  • tightening USDP's peg through improved liquidity on secondary markets.
Paxos
Stability

The Stability factor is evaluated on the following:

  1. Reserves Management - Quality, quantity, storage and segregation of reserve assets
  2. Market Feedback - Indicators of market's confidence in a stablecoin derived from price and trade data
  3. Mechanism - Stabilization methods that protect the stablecoin 
Paxos
Management

The Management factor is evaluated on the following:

  1. Restrictions - What deterrents exist to prevent key personnel of stablecoin projects from unethical and illegal behavior?
  2. Negative Track Record - Have key personnel been involved in scams, frauds or other illegal activities?
Paxos
Decentralization

This factor evaluates censorship resistance using indicators like regulatory oversight, asset custody, and governance controls.

Decentralization is not a key objective for Paxos Trust Company, who prioritizes compliance over decentralization. Therefore, this factor is not assessed.

Paxos
Governance
The Governance factor for fiat-backed stablecoins is evaluated on the following:
 
1. Holder Protection - What rules, statutes or code exist to protect interests of stablecoin holders?
 
2. Reserves Verification - What checks are done to ensure existence of reserves?
 
3. Redemptions - Do issuers have transparent and reasonable redemption terms?