Dialogue with Paxos co-founder Rich Teo: It will take time to promote the adoption of stablecoins by mainstream companies

In this bull market where Bitcoin, Ethereum, and major mainstream projects have reached new highs, everyone may have overlooked the development of the stablecoin track. After a year, the total market value of the stablecoin track has reached nearly 40 billion US dollars.

2020 is a year of rapid development of stablecoins, whether it is DeFi liquidity mining or The payment attribute, or the hedging function, the stable currency has already surpassed the cryptocurrency market and completely out of the circle.

In the field of stable currency, in addition to USDT with a market value of 28 billion US dollars, PAX, HUSD, and BUSD together currently exceed 2.5 billion US dollar market value, Paxos is responsible for the payment giant Paypal channel to purchase bitcoin custody services. And just at the end of 2020, Paxos, a stablecoin issuer, completed a $142 million Series C round of financing.

Rhythm BlockBeats interviewed Paxos co-creator and Asia CEO Rich Teo, and talked about his thoughts on the stable currency track Views and imaginations hosting this blue ocean.

Rhythm BlockBeats: This round of C round led by PayPal Round of financing, I heard that the top capital in the cryptocurrency industry has also participated in the investment, can you disclose the list?

Rich Teo:Paxos, the stablecoin PAX issuer, has completed $142 million The C round of financing, with a total financing of more than 240 million US dollars. The financing was led by Declaration Partners, with participation from Mithril Capital, PayPal Ventures, RIT Capital Partners, Ken Moelis, Alua Capital, Senator Investments, RRE, and Liberty City Ventures.

Rhythm BlockBeats: Whether stablecoins are in the cryptocurrency industry The ecology and the application outside the circle have far exceeded expectations. The market value of PAX is about 400 million US dollars. What is the expected market value of PAX next year? What size will the stablecoin sector reach?

Rich Teo:We are very optimistic about the development prospects of PAX. More and more users are involved in payment and settlement, and the market value of PAX is also growing continuously. Stablecoins supported by Paxos include PAX, HUSD, and BUSD, which can be traded within the same ecosystem with high speed and low fees. With a compliant stablecoin, we can create a brand new brand focused on customer experience. At the same time, Paxos also provides basic services in credit, technology and finance to help customers develop their core businesses.

Stable currency is an important part of open financial basic services. We believe that whether it is a leading multinational retailer, a global communication provider, or a payment method provider, all can benefit from stablecoins. If hundreds of thousands of customers in these companies use stablecoins, it will be an unimaginable scale. However, the market currently needs more time to drive the adoption of stablecoins by mainstream companies.

Rhythm BlockBeats: In early December this year, members of the US Congress drafted Stablecoin-related bills require potential issuers of stablecoins to obtain a banking license before issuing any stablecoins, and to report to regulators in a timely manner. If this draft is implemented, what impact will it have on stablecoins?

Rich Teo:Like most of the bills proposed by the U.S. Congress, this bill for stablecoins requires Congress to invest a lot of time and money to improve. This legislation is only an idea put forward by some people and does not represent the opinions of all members of the US Congress. Therefore, we believe it is too early to judge the future development of this bill and its ultimate impact on the industry as a whole.

However, Paxos also believes that the development of clear and unambiguous laws is the only way to promote the maturity of the industry. Industry development is critical. We will establish cooperation with the US Congress to ensure that Paxos complies with relevant laws and regulations; at the same time, we will maintain communication with regulatory agencies to facilitate the company's innovation.

Rhythm BlockBeats: After PayPal Supports Bitcoin Purchases, Paxos Responsible for custody, what do you think of the Bitcoin custody market, is this a blue ocean that has not yet been tapped?

Rich Teo: Paxos was the first to offer custody under a trust charter. Asset safety is the top priority of custody services, and we will 100% guarantee the safety of customers' assets.

Cryptocurrency is only 10 years old now, and various technologies are improving all the time. Right now, assets in the crypto space represent only a small fraction of the world's total assets, but we believe there will be substantial growth in the next few years. Rapidly evolving cryptocurrencies present opportunities for performance for many custody companies, but Paxos is unique.

Rhythm BlockBeats: Pantera has given data before, It is said that the daily purchase volume of Bitcoin through the PayPal channel is about 630 pieces. Can you disclose the current number of users and purchase volume through the PayPal channel?

Rich Teo:We Can not disclose specific details.

BlockBeats: The future of Paxos in stablecoins and custody What new plans are there? What new businesses will be expanded?

Rich Teo: We will continue to provide fundamental services to the global financial system in 2021. Through Paxos Crypto Brokerage, we will provide services supporting crypto assets on the platform for companies of different types and sizes. With the Series C funding, we hope to double the size of the company to expand existing product solutions and develop new products. At the same time, we will also ensure that Paxos complies with relevant laws and regulations to ensure product reliability and security.

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