{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "what-is-usdp",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-usdp/",
  "collection": "stablecoins",
  "title": "What is Pax Dollar (USDP)?",
  "description": "Identify Pax Dollar, its reserve and redemption model, and why a wallet balance differs from an approved account with the issuer.",
  "aliases": [
    "what is usdp",
    "What is Pax Dollar (USDP)"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:26:58.461Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Pax Dollar, or USDP, is a dollar-referenced stablecoin issued by Paxos. The terms checked on 2 October 2026 identify Paxos Trust Company, NA and describe one-for-one customer redemption subject to the platform’s conditions. Its reserve model, market trading price and a holder’s redemption access are separate things to assess.",
    "claimId": "what-is-usdp-quick-answer",
    "sourceIds": [
      "x425-sc-usdp",
      "x425-sc-paxos-terms"
    ]
  },
  "keyFacts": [
    {
      "label": "Asset",
      "value": "USDP is the Pax Dollar stablecoin, distinct from other Paxos-issued tokens.",
      "sourceIds": [
        "x425-sc-usdp",
        "x425-sc-paxos-terms"
      ],
      "id": "asset",
      "claimId": "what-is-usdp-fact-asset"
    },
    {
      "label": "Backing",
      "value": "Paxos describes dollar reserves held in permitted cash and cash-equivalent arrangements.",
      "sourceIds": [
        "x425-sc-paxos-terms"
      ],
      "id": "backing",
      "claimId": "what-is-usdp-fact-backing"
    },
    {
      "label": "Account access",
      "value": "Issuer redemption requires the applicable Paxos account and checks.",
      "sourceIds": [
        "x425-sc-paxos-terms"
      ],
      "id": "account-access",
      "claimId": "what-is-usdp-fact-account-access"
    }
  ],
  "prerequisites": [
    "cash-backed-stablecoins"
  ],
  "sections": [
    {
      "id": "identity",
      "heading": "Read the full asset name",
      "sourceIds": [
        "x425-sc-usdp",
        "x425-sc-paxos-terms"
      ],
      "paragraphs": [
        "USDP is one product within a wider set of stablecoins associated with Paxos. A shared service provider does not make USDP, PYUSD and USDG interchangeable deposit assets. Their tickers, deployments and applicable entity arrangements differ.",
        "A recipient requesting USDP should receive the supported USDP version on the specified chain. Do not substitute another dollar token just because both aim at the same reference value."
      ]
    },
    {
      "id": "redemption",
      "heading": "Separate holding, selling and redeeming",
      "sourceIds": [
        "x425-sc-paxos-terms"
      ],
      "paragraphs": [
        "A self-custody balance records tokens controlled by the wallet. A sale exchanges them with another market participant. Direct redemption uses the issuer’s account process and the applicable eligibility requirements.",
        "The documented process includes a redemption address associated with the customer’s account. Sending tokens to an address copied from an unrelated transaction is not a substitute for obtaining the proper instructions."
      ]
    },
    {
      "id": "reserve",
      "heading": "Read the observation behind the reserve statement",
      "sourceIds": [
        "x425-sc-usdp",
        "x425-sc-paxos-terms"
      ],
      "paragraphs": [
        "Paxos publishes reserve information for USDP. Check which date and token supply the report covers and what the independent assurance statement actually concludes. The report is evidence about that scope, not a continuous audit of every transfer.",
        "An exchange’s displayed USDP price and the issuer’s par-redemption commitment answer different questions. Liquidity and access costs can affect what a specific holder realizes when exiting."
      ]
    }
  ],
  "faq": [
    {
      "question": "Can I send USDP when a merchant requests USDC?",
      "answer": "Only if the merchant explicitly accepts that alternative. A common dollar reference does not make the two token contracts, issuers or deposit-credit systems the same.",
      "sourceIds": [
        "x425-sc-usdp",
        "x425-sc-circle-addresses"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-usdp-quick-answer",
      "articleSlug": "what-is-usdp",
      "statement": "Pax Dollar, or USDP, is a dollar-referenced stablecoin issued by Paxos. The terms checked on 2 October 2026 identify Paxos Trust Company, NA and describe one-for-one customer redemption subject to the platform’s conditions. Its reserve model, market trading price and a holder’s redemption access are separate things to assess.",
      "sourceIds": [
        "source-9917017e3714bc8f",
        "source-7a8cf58deabd271c"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9917017e3714bc8f",
          "locator": "Pax Dollar; reserves; transparency"
        },
        {
          "sourceId": "source-7a8cf58deabd271c",
          "locator": "Introduction; 2.7 Redemption; reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Paxos current NA issuer, customer account and unique redemption address checked. USDP/USDC noninterchangeability supported."
      }
    },
    {
      "id": "what-is-usdp-fact-asset",
      "articleSlug": "what-is-usdp",
      "statement": "Asset: USDP is the Pax Dollar stablecoin, distinct from other Paxos-issued tokens.",
      "sourceIds": [
        "source-9917017e3714bc8f",
        "source-7a8cf58deabd271c"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-9917017e3714bc8f",
          "locator": "Pax Dollar; reserves; transparency"
        },
        {
          "sourceId": "source-7a8cf58deabd271c",
          "locator": "Introduction; 2.7 Redemption; reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Paxos current NA issuer, customer account and unique redemption address checked. USDP/USDC noninterchangeability supported."
      }
    },
    {
      "id": "what-is-usdp-fact-backing",
      "articleSlug": "what-is-usdp",
      "statement": "Backing: Paxos describes dollar reserves held in permitted cash and cash-equivalent arrangements.",
      "sourceIds": [
        "source-7a8cf58deabd271c"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-7a8cf58deabd271c",
          "locator": "Introduction; 2.7 Redemption; reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Paxos current NA issuer, customer account and unique redemption address checked. USDP/USDC noninterchangeability supported."
      }
    },
    {
      "id": "what-is-usdp-fact-account-access",
      "articleSlug": "what-is-usdp",
      "statement": "Account access: Issuer redemption requires the applicable Paxos account and checks.",
      "sourceIds": [
        "source-7a8cf58deabd271c"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-7a8cf58deabd271c",
          "locator": "Introduction; 2.7 Redemption; reserves"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Paxos current NA issuer, customer account and unique redemption address checked. USDP/USDC noninterchangeability supported."
      }
    }
  ],
  "sources": [
    {
      "id": "x425-sc-usdp",
      "label": "Pax Dollar",
      "publisher": "Paxos",
      "url": "https://www.paxos.com/usdp",
      "locator": "Pax Dollar; reserves; transparency",
      "note": "USDP product identity and reserve reporting; marketing is not an independent solvency audit.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:08.368Z",
      "contentSha256": "ad8eb3e0b50214031d266438edb22d9f4eebf37fa5e0d2cecaa901351f6410d2",
      "recordId": "source-9917017e3714bc8f"
    },
    {
      "id": "x425-sc-paxos-terms",
      "label": "USD stablecoin terms",
      "publisher": "Paxos",
      "url": "https://www.paxos.com/terms-and-conditions/stablecoin-terms-conditions",
      "locator": "Introduction; 2.7 Redemption; reserves",
      "note": "Current issuer entities and account-based redemption of USDG and USDP, with conditions and limits.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:08.354Z",
      "contentSha256": "aea3ef4b875160c4224a7a9bdb9629d602f128a8a1dc36bd67fd446f098dce34",
      "recordId": "source-7a8cf58deabd271c"
    },
    {
      "id": "x425-sc-circle-addresses",
      "label": "USDC contract addresses",
      "publisher": "Circle",
      "url": "https://developers.circle.com/stablecoins/usdc-contract-addresses",
      "locator": "Mainnet addresses; Solana",
      "note": "Official chain-specific token identification. Testnet and mainnet identities must not be confused.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:05.791Z",
      "contentSha256": "429d18007d36b6b885c2937cc881602fd126e7993edf4445fc2b0e0b38ad2d1a",
      "recordId": "source-66270bffe3272787"
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  ],
  "related": {
    "articles": [
      "what-is-usdc",
      "what-is-usdg",
      "stablecoin-transfer-vs-redemption",
      "what-is-fdusd"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “What is Pax Dollar (USDP)?.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-usdp/"
}