The stablecoin, backed 1:1 by the US dollar, was approved by the New York Financial Services Authority (NYDFS) in September 2018.

According to the official website announcement, the original Paxos account only had "a few hours" a day to allow users to buy PAX in US dollars or exchange PAX for US dollars, but Paxos has developed Paxos wallet (platform) to overcome this.

The wallet is integrated with its related enterprise itBit exchange, and the wallet allows users to buy or exchange PAX for US dollars 24 hours a day, all year round.

Because of this, now depositing PAX on Paxos wallet will be displayed in US dollars, because PAX and US dollars are now interchangeable. The withdrawal function also has two options: "wallet address” and “ Bank account”.

Chad Cascarilla, founder of Paxos, said: The wallet is similar to a bank account, with a part bank account and part escrow account.

Back in 2018, both Paxos and Gemini designed incentives for their stablecoins PAX and GUSD, respectively, to get up to 1% off OTC over-the-counter. But this move still cannot steal too much market share from USDT, the king of stablecoins which dominates the stablecoin market.
In fact, because of its small market share, it is less easy to exchange PAX stablecoins back to US dollars in over-the-counter transactions. And now for OTC traders, a secure and compliant dollar exchange service like Paxos is very attractive. However, most users of USDT do not need such a service.
USDC issued by Coinbase also has Paxos' PAX. Another OTC trader said that after Bitfinex broke out the illegal appropriation of USDT's reserves, the demand for both USDC and PAX has increased to some extent.