Paxos will provide blockchain framework and tokenization solution to Brazilian businesses
According to Michael Coscetta, who serves as the Chief Revenue Officer for Paxos, there is a notable increase in the interest of Brazil’s large companies to provide their customers with cryptocurrency, stablecoin and bullion. In the current scenario, their primary focus is to work with partners who are regulated and trusted. The pursuit of regulatory clarity in Brazil is expected to result in an increase in adoption. It is our professional opinion that the inclusion of cryptocurrency in one’s investment portfolio will soon become a necessity.
According to Arnoldo Reyes, head of Latin America at Paxos, there is a growing trend among Brazilian consumers to increasingly adopt digital assets and services. In 2022, Paxos unveiled significant partnerships with prominent industry players, including Mercado Libre, Mastercard, Nubank and PicPay. It is our professional opinion that integrating cryptocurrency into the value proposition will play a central role in the acquisition, engagement and retention of customers in Brazil. It is our belief that the implementation of progressive policies will promote increased participation and cooperation between entities such as Paxos and government bodies such as the Central Bank of Brazil. The acceleration of blockchain and cryptocurrency adoption can be facilitated by the cooperation between the public and private sectors, resulting in a boost in economic growth for businesses and consumers.
According to the company’s statement, over 60% of Paxos’ operating accounts are for Latin American customers. The company has ensured that the business is equipped with supervision, risk management and company control at all levels. The infrastructure of Paxos consists of solutions for stablecoin and cryptobroking. As part of the offering, Paxos is providing access to its regulated tokens, namely Pax Dollar (USDP) and Pax Gold (PAXG).
The USDP digital currency is fully supported and redeemable at any time, acting as an equivalent to the US dollar. USDP is a currency platform that enables the transfer, receipt and storage of US dollars and is available to everyone. PAXG is a viable investment option for those who want to own physical gold. It is a digital token backed by a fine ounce of LBMA gold, which is safely stored in warehouses in London. The digital assets in question are issued exclusively by Paxos Trust Company and are subject to regulatory oversight by the New York Department of Financial Services.
Thomaz Lysakowski Fortes, Managing Director of Nubank Crypto, has emphasized the importance of a seamless and secure infrastructure for customers keen to explore the world of decentralized cryptocurrencies. According to him, Nubank Cripto offers a hassle-free experience, along with a robust security system, to ensure customers can take their first financial steps with confidence. By partnering with Paxos, a prominent provider of blockchain infrastructure, we have secured a partner that guarantees worldwide security for the safekeeping of our customers’ digital assets. This partnership instills confidence in our ability to explore and develop within the expansive realm of cryptocurrency opportunities.
In 2023, Paxos aims to improve the accessibility of cryptocurrencies in the region by expanding its corporate partnerships, continue to tokenize assets and facilitate payments in and out of Brazil through regulated stablecoins, thereby promoting greater democratization. The use of blockchain technology by the Brazilian government is expected to accelerate the acceptance of cryptocurrencies. Paxos, on the other hand, is well equipped to provide support to businesses in this endeavour.