New York-based Paxos, a stablecoin custodian, and issuer, is set to integrate Chainlink, a decentralized oracle network. The partnership between the two aims to overhaul Paxos’ role in DeFi markets, allowing users to expand their asset-backed stablecoins – Paxos Standard (PAX) and Paxos Gold (PAXG).
According to the announcement from the Paxos team, the stablecoins – PAX and PAXG – will join a long list of tokens available on Chainlink’s decentralized oracles. The addition of Paxos on Chainlink will ease the integration of the stablecoin on DeFi products, which increases the market demand of Paxos.
Chainlink is a widely popular oracle that nearly 50% of the DeFi products and projects use to relay real-time prices and on-chain data to the projects. The blockchain provides access to high-quality data, decentralized oracle infrastructure, and Sybil resistant oracle nodes, enhancing the surging DeFi market.
Paxos aims to rediscover its potential in the DeFi market with this move – after a slow start compared to its competitors such as Tether (USDt), Circle’s USD Coin (USDC), and Dai stablecoin. Of the top DeFi projects, the only Maker supports Paxos stablecoins as a collateral option. Several governance protocols are set to integrate Paxos in the near future following the integration of Chainlink, a spokesperson from Paxos said.
“Chainlink oracles will accelerate the adoption of Paxos’ [U.S. dollar] and gold-backed tokens in DeFi,” Walter Hessert, the company’s head of strategy.
“With the proof of reserve and price available on-chain, our regulated assets will become more accessible for DeFi users.”
The Paxos team seems to be warming up to a big year in 2021 after it raised over $142 million from PayPal and Revolut in November. This brought the total amount raised by the company to $240 million. At the time, Paxos CEO Charles Cascarilla said the funds would be used to bolster the expansion of their assets in a bid to build a “market infrastructure of the future.”
Since the PayPal partnership that saw Paxos guide the company to its launch of a crypto service, the stablecoin firm is heavily focusing on the DeFi market to boost adoption – and Chainlink may be the solution!