Share this article
Paxos Makes Fresh Push for DeFi Market With New Oracle Integration
Paxos’ stablecoin tokens have mainly been playing catch-up since the DeFi spike in 2020.
Updated Sep 14, 2021, 10:56 a.m. Published Jan 14, 2021, 4:00 p.m.
Make us preferred on GooglePaxos is teaming up with Chainlink in a bid to make its asset-backed tokens more widely available across the decentralized finance (DeFi) market.
STORY CONTINUES BELOW
The paxos standard (PAX) and paxos gold (PAXG) tokens are now available on Chainlink’s oracle network, according to a blog post shared early with CoinDesk. Chainlink operates as background pricing and data infrastructure for many DeFi projects and accounts for over 50% of on-chain smart contract calls among oracles, according to DeBank.
Paxos’ stablecoin tokens have mainly been playing catch-up since the DeFi spike in 2020. Of the top DeFi lending platforms according to DeFi Pulse, only MakerDAO currently offers PAX as a collateral type.
Moreover, stablecoins dai, usd coin (USDC) and tether make up the lion’s share of stablecoin activity on the Ethereum blockchain (where DeFi apps tend to live), according to data provider DeBank.
The addition of Paxos’ tokens to Chainlink’s feeds necessarily makes integration of new assets easier for each DeFi application leaning on the data provider. It also adds validity to the growing trend of real world assets making their way to the $21 billion DeFi market.
Read more: No Collateral Required: How Aave Brought Unsecured Borrowing to DeFi
Regulated DeFi collateral
Paxos is using its sterling reputation to lure investors toward its stablecoins.
Each Paxos product is backed by a string of private and public entities attesting to actual reserves, said the company's head of strategy Walter Hessert in a phone interview with CoinDesk.
The New York-based firm – which was recently tapped to source PayPal’s cryptocurrency supply – holds a New York Trust charter. That means every crypto product addition is reviewed by the regulator, Hessert said.
Paxos’ bank accounts are also audited monthly by New Jersey-based accounting firm Withum. Those findings are pushed to Paxos’ API feed, which is then further routed to projects using Paxos’ tokens as collateral.
“Chainlink oracles will accelerate the adoption of Paxos’ [U.S. dollar] and gold-backed tokens in DeFi,” Hessert said in a statement. “With the proof of reserve and price available on-chain, our regulated assets will become more accessible for DeFi users.”
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Solana’s new phase is ‘much more about finance,’ says Backpack CEO Armani Ferrante
The Solana ecosystem has spent the past year doubling down on a financial infrastructure, Backpack CEO Armani Ferrante told CoinDesk.
What to know:
- Solana’s latest phase looks a lot less flashy than its memecoin-fueled highs, and that may be the goal.
- Armani Ferrante, CEO of crypto exchange Backpack, told CoinDesk in an interview the Solana ecosystem has spent the past year doubling down on a more sober focus: financial infrastructure. A
- fter years of experimentation as the wider crypto industry focused on NFTs, games and social tokens, attention is now shifting back toward decentralized finance, trading and payments.
Top Stories
