Paxos Dollar (USDP) price drops below $1 as the platform being investigated

The USDP stablecoin, overseen by Paxos, experienced a fleeting loss of its $1 anchor and is currently valued at $0.998. Unfortunately, this is not a one-off occurrence for the asset, which has been known to break away from its anchor multiple times throughout 2022.

The Pax Dollar stablecoin was born in 2018, and although it hasn’t gained the same level of recognition as its competitors like USDT and USDC, it has carved out its niche in the market.

Drop in value on account of the investigation

Not long after the news broke that the company was launching an investigation into Paxos, prices began to fluctuate and veered off their $1 peg. However, the investigation’s details remain shrouded in secrecy, leaving many in the dark about what may have caused the NYDFS to launch their probe.

Amidst the investigation, the Pax Dollar stablecoin stumbled and briefly slipped from its coveted $1 peg, hovering at around $0.98 on February 9, 2023.

Meanwhile, whispers of the U.S. Office of the Comptroller of the Currency potentially requesting Paxos to pull their application for a national trust bank charter sparked controversy, though the firm vehemently denies the claim.

Paxos making headway through partnerships

Nonetheless, Paxos has been making waves in the financial world with its recent push for greater market dominance. The company recently announced a strategic partnership with the leading DeFi player, MakerDAO, in an effort to boost the Pax Dollar. This collaboration seeks to elevate the Pax Dollar’s standing in the Peg Stability Module of MakerDAO.

Furthermore, its reach is soaring to new heights in Singapore, with the gracious support of the Monetary Authority of Singapore (MAS). They plan to bolster their workforce by hiring a minimum of 130 employees. 

Additionally, Paxos has joined forces with Mastercard to revolutionize the banking world by introducing cryptocurrency trading to the mainstream.