Paxos to Launch Stablecoin on Solana
The tokenization and stablecoin platform Paxos has announced its plans to expand its stablecoin issuance to the Solana blockchain. This move comes after the New York Department of Financial Services (NYDFS) approved Paxos' initiative, allowing public access to the Pax Dollar (USDP) via Solana starting January 17, 2024.
Paxos' First Expansion to a New Blockchain
Paxos' expansion to Solana marks the first time the company has ventured beyond its initial blockchain, Ethereum. The endorsement from NYDFS has paved the way for Paxos to broaden the reach of its stablecoin in the crypto market.
Walter Hessert, Paxos Head of Strategy, expressed the significance of this expansion, stating, "The expansion of our stablecoin platform to support Solana marks an important step towards making stablecoins ubiquitous for everyday consumers."
Other Stablecoin Offerings by Paxos
In addition to the Pax Dollar (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. Paxos also collaborates with Paypal to oversee the issuance of Paypal's PYUSD stablecoin.
USDP's Market Position
USDP currently holds the ninth position in terms of market capitalization among stablecoins, with a circulating supply of 369,946,003 tokens. The stablecoin has received an A- grade from Bluechip's stablecoin rankings, recognizing its regulatory compliance and customer protection measures. However, its adoption in the wider crypto markets remains limited.
In the past 24 hours, USDP has witnessed $3,937,693 in global trade volume. While this is a modest amount compared to major stablecoins like tether (USDT) and USD Coin (USDC), it demonstrates the growing interest in USDP. Binance is the most active exchange for USDP, with USDT being the most traded pairing.
Solana Smart Contract Address for USDP
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 five recorded transactions. This indicates the early stages of USDP's integration with Solana.
Solana's Potential for Financial Innovation
Raj Gokal, the co-founder of Solana, expressed excitement about Paxos' decision to bring stablecoin issuance to the Solana blockchain. He believes that Solana's high-performance network and low transaction fees can support regulated financial products and provide companies like Paxos with new opportunities for scaling and innovation.
What are your thoughts on Paxos expanding to Solana? Share your opinions in the comments section below.
Frequently Asked Questions
Can I have a gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
What tax is gold subject in an IRA
The fair value of gold sold to determines the price at which tax is due. If you buy gold, there are no taxes. It is not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
You can use gold as collateral to secure loans. Lenders seek to get the best return when you borrow against your assets. For gold, this means selling it. This is not always possible. They might just hold onto it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.
To avoid losing money, only lend against gold if you intend to use it for collateral. It's better to keep it alone.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
You don't pay tax if you have the money in a traditional IRA/401k. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules that govern these accounts differ from one state to the next. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. In Massachusetts, you can wait until April 1st. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Should You Invest Gold in Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. Retirees will find it an attractive investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. 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 advantage to gold is that it can be used as a tangible asset. Gold is much easier to store than bonds and stocks. It can be easily transported.
Your gold will always be accessible as long you keep it in a safe place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. Just like stocks, you can liquidate your position whenever you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Start by purchasing a few ounces. Next, add more as required.
It's not about getting rich fast. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
- Fraud Advisory: Precious Metals Fraud
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