USDP The stablecoin briefly tumbled to $0.98 on February 10. The crypto asset is reportedly investigating Paxos by the New York Department of Financial Services (NYDFS).
The USDP stablecoin, managed by Paxos, has lost its $1 stable value for a while and hovers around $0.98. This isn’t the first time the stablecoin has lost its stable. The asset has recorded many similar declines throughout 2022.
Pax Dollar stablecoin It took its place on the market in 2018. It’s not as popular as competing assets like USDT and USDC, but it still has a market.
Koinfinans.com As we reported, the price fluctuation is caused by the New York Department of Financial Services (NYDFS). PaxosIt came after the news that he was investigating. According to sources who first reported the news, the agency did not offer further details on the matter.
The investigation may be one reason the stablecoin lost its peak, but Paxos has made headlines for other reasons as well. The U.S. Office of the Comptroller of the Currency is said to have asked Paxos to withdraw its application for a national trust bank charter. Paxos do this denied.
To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter. Paxos continues to work constructively with the OCC.
— Paxos (@PaxosGlobal) February 8, 2023
NYDFS has taken multiple actions recently to exert some control over the crypto market. In June 2022, Inspector Adrienne A. Harris published regulatory guidance for stablecoins backed by the US Dollar.
On the other hand, Paxos has recently attracted attention with its efforts to increase its presence in the market. The company made headlines with the announcement of a partnership with MakerDAO, a leading player in the DeFi space. This collaboration aims to strengthen Pax Dollar in the Peg Stability Module in MakerDAO.