"Blockchain Trust company Paxos has launched a dollar backed [stablecoin] following approval from New York regulators, according to a press release published September 10.
Backed 1:1 by the dollar, the [Ethereum blockchain-based stablecoin, dubbed ‘Paxos Standard,’ has been approved by the New York State Department of Financial Services (NYDFS), which will exercise regulatory oversight over the asset’s issuance and trading.
Paxos itself is a Trust company and is positions itself as “a fiduciary and qualified custodian of customer funds,” pitching its new coin as offering “greater protections” for customer assets than its competitors."
Accordingly, upon redemption or cash out via dollar of the holder, the relevant coin will be destroyed. Moreover, I think that will, in essence add up to the change in value of the coin, more or less in increasing its value. Imagine how the total number of coin will deplete upon cash out. Also, be it noted that it is regulated by NYDFS. We will soon see how this coin will perform in the market knowing it is pegged (literally) in USD.