See More

Paxos Dollar (USDP) Briefly Loses Peg as NYDFS Reportedly Probes the Platform

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Paxos’ stablecoin USDP briefly lost its $1 peg.
  • The New York Department of Financial Services (NYDFS) is reportedly probing the platform.
  • NYDFS has been taking several actions with respect to investigating the crypto market.
  • promo

The USDP stablecoin lost its peg briefly on Feb. 10 after falling to $0.98. The New York Department of Financial Services (NYDFS) is reportedly probing Paxos.

The USDP stablecoin, managed by Paxos, briefly lost its $1 peg and is hovering at around $0.98. This is not the first time the stablecoin has lost its peg, with the asset showing multiple instances of this throughout 2022.

USDP Price by CoinMarketCap
USDP Price: CoinMarketCap

The Pax Dollar stablecoin was created in 2018. It is not as popular as competing stablecoins like USDT and USDC but has still managed to find a market.

The fluctuation in prices took place not long after The New York Department of Financial Services (NYDFS) said that it was investigating issuer Paxos. The agency did not offer any more details on the matter, according to sources that first reported the news.

The investigation is one reason that the stablecoin may have lost its peg, but Paxos has also made headlines for other reasons. The U.S. Office of the Comptroller of the Currency was rumored as considering asking Paxos to withdraw its application for a national trust bank charter. Paxos has denied this.

NYDFS Not Taking Crypto Market Lightly

The NYDFS has taken multiple actions in recent times in a bid to exert some control over the crypto market. In June 2022, Superintendent Adrienne A. Harris issued regulatory guidance for stablecoins backed by the U.S. Dollar.

More recently, it issued guidance on custodial standards for companies registered in New York state. This was sparked by the several bankruptcies that have taken place in the crypto industry. Meanwhile, it issued a $30 million fine to Robinhood Crypto for several reasons.

Paxos Making Headway with Collaborations

Paxos has recently gained attention for its efforts to increase its market presence. The company made headlines with the announcement of a partnership with MakerDAO, a leading player in the DeFi space. This collaboration aims to boost the Pax Dollar in the Peg Stability Module on MakerDAO.

Paxos has also received approval from the Monetary Authority of Singapore (MAS). The country appears to be a major target for the project, with Paxos planning to hire at least 130 individuals in the country. It has also joined forces with Mastercard to offer crypto trading to banks.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Rahul-Nambiampurath.jpg
Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
READ FULL BIO
Sponsored
Sponsored