Paxos Standard is a fiat-backed, collateralized stablecoin pegged to the U.S. dollar. The asset runs on top of the Ethereum blockchain and 'combines the stability of the dollar with the efficiency of blockchain technology'. Paxos, the company behind PAX, is a Trust company regulated by the New York State Department of Financial Services. The company undergoes an audit of their U.S. dollar reserves monthly. Paxos guarantees that users will be able to redeem PAX at a rate of 1 PAX = $1 USD within one business day, after an identity check to become a Paxos customer. This check is known in the banking industry as a KYC/AML check ('Know Your Customer' and 'Anti Money Laundering').