Paxos Set to Launch Stablecoin on Solana, Expanding USDP Reach in Crypto Market
Paxos, the tokenization and stablecoin platform, has announced its plans to broaden the issuance of its stablecoin to the Solana blockchain. This move comes after receiving approval from the New York Department of Financial Services (NYDFS). Paxos aims to make its stablecoin, known as pax dollar (USDP), publicly available on Solana starting from January 17, 2024.
Paxos' Expansion to Solana Marks a Milestone in Stablecoin Adoption
The decision to expand to Solana represents Paxos' first venture into a new blockchain, as USDP was initially launched on Ethereum. The endorsement from NYDFS enables Paxos to provide public access to USDP via Solana by mid-January 2024. Walter Hessert, Paxos Head of Strategy, emphasized that this expansion is a significant step towards making stablecoins more accessible to everyday consumers.
Paxos' Role in the Stablecoin Market
In addition to USDP, Paxos has been overseeing the issuance of the stablecoin BUSD. However, the NYDFS directed the cessation of BUSD creation, leading to a significant redemption of circulating BUSD tokens over the past year. Paxos is also collaborating with Paypal to oversee the issuance of Paypal's newly introduced PYUSD stablecoin.
USDP's Market Position and Potential for Growth
USDP currently ranks as the ninth largest stablecoin in terms of market capitalization, 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 focus on customer protection. However, it notes that USDP's adoption in the wider crypto markets is still limited.
In terms of trading volume, USDP has seen $3,937,693 in global trade volume in the last 24 hours. While this is a modest sum compared to major stablecoins like tether (USDT) and usd coin (USDC), it indicates a growing interest in USDP. Binance is currently the most active exchange for USDP, with the most traded pairing being with USDT.
Solana's Role in Paxos' Stablecoin Expansion
Paxos has disclosed the specific Solana smart contract address for USDP, signaling its commitment to the Solana blockchain. Currently, there are only 69 Solana-based USDP tokens in existence, with a recorded history of five transactions. Raj Gokal, the co-founder of Solana, expressed his excitement about Paxos' decision, highlighting how Solana's high-performance network and low transaction fees can support regulated financial products and provide innovative opportunities for companies like Paxos.
In conclusion, Paxos' expansion to the Solana blockchain marks an important milestone in the adoption of stablecoins. With NYDFS approval and the support of Solana's network, Paxos aims to make its stablecoin more accessible to consumers and explore new avenues for growth in the crypto market.
What are your thoughts on Paxos' expansion to Solana? Share your opinions in the comments section below.
Frequently Asked Questions
What does gold do as an investment?
The supply and the demand for gold determine how much gold is worth. Interest rates can also affect the gold price.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What amount should I invest in my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. You cannot touch your principal (the amount you originally deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. When you withdraw, you will have to pay income tax. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs won't let you deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are sometimes called “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This allows you to receive dividends every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. Plus, you get free access to your funds whenever you want.
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. You must complete this form within 60 days of opening your account. You can then start investing once you have this completed. You can also contribute directly to your paycheck via payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made on a regular basis. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means you won’t be able to trade stocks and bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option may be offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Therefore, you will lose more money than you gain over time.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. Gold may not be right for you if you want quick profits. If patience and time are your priorities, silver is the best investment.
If you don't care about getting rich quickly, gold is probably the way to go. Silver might be a better investment option if steady returns are desired over a long period of time.
What are the benefits of having a gold IRA?
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It's not subject to tax until you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited for people who want to save for college expenses. Some are better suited for investors who want higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. But once they start withdrawing funds, those earnings aren't taxed again. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. You could also set up direct debits to never miss a payment.
Finally, gold is one the most secure investment options available. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil, gold prices tend not to fluctuate. It is therefore a great choice for protecting your savings against inflation.
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bars are the most popular way to invest in gold. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. Owning gold stocks should work well if you need cash flow from your investment.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Statistics
- 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)
- 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)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- (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)
External Links
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
irs.gov
bbb.org
How To
How to hold physical gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Alternative options include buying physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's easier to track how much gold is in your possession. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You are also less likely to be robbed than investing in stocks.
There are also some drawbacks. Bank interest rates and investment funds won't help you. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, tax man may want to ask where you put your gold.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Jamie Redman
Title: Paxos Expands to Solana Following NYDFS Approval, Opening Up New Opportunities for Stablecoin
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
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