In a nutshell, the holding instrument incorporates a brilliant arrangement that makes installments in a US dollar when you utilize one PAX. The dollars are held by the Paxos Trust Company. According to the Paxos white paper, the New York State Department of Financial Services facilitates the Paxos Trust Company. Anyhow, neither the Paxos Trust Company nor Paxos Standard is managed by the US government.

Pax currency, or Paxos Standard (PAX), is a stablecoin launched by Paxos in 2018. It is designed to maintain a stable value by being pegged 1:1 to the US dollar. Each PAX token is backed by an equivalent amount of USD held in reserve by Paxos Trust Company, ensuring its stability and reliability. Paxos Standard leverages blockchain technology to provide a secure and efficient means of transferring value, combining the benefits of digital currencies with the stability of fiat money. It is commonly used for trading, payments, and hedging against volatility in the cryptocurrency market. PAX is regulated by the New York State Department of Financial Services, adding an extra layer of trust for users.