Paxos vs RAI

How Paxos vs RAI compare on our ratings, stablecoin specs, funding, pros and cons.

Paxos4.3/5

RAI3.0/5

Feature	Paxos Visit	RAI Visit
Ratings
Our score	4.3/5	3.0/5
User rating	No reviews yet	No reviews yet
Reserves & transparency	4.5	4.5
Peg stability	4.5	2.5
Regulation	5.0	1.0
Liquidity & chains	3.5	2.5
Redemption	3.5	4.0
Specs
Tickers	USDP, USDG, PYUSD, PAXG	RAI
Pegged to	US dollar	Other
Backing	Cash & treasuries	Crypto collateral
Yield-bearing	No	No
Regulated issuer	Yes	No
Licenses & charters	National Trust Bank Charter (OCC), Limited Purpose Trust Charter (NYDFS), Major Payment Institution (MAS), Electronic Money Institution (FIN-FSA)	Not disclosed
Chains	Ethereum, Solana, Arbitrum One, Polygon PoS, Avalanche, Ink, Mantle, Robinhood Chain, X Layer, Stellar	Ethereum, Fantom, Polygon, Solana, Avalanche, Arbitrum, Optimism
Reserve reports	Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC	Not disclosed
Redemption terms	1:1 direct fiat redemption via Fedwire, SWIFT, and CUBIX for verified institutional and enterprise platform accounts	Collateral redeemed from SAFEs via repayment or by token holders through Global Settlement at the floating redemption price
Issuer can freeze tokens	Yes	No
Company
Founded	2012	2020
Headquarters	United States	—
Investors	Declaration Partners, Founders Fund, PayPal Ventures	Lemniscap, Pantera Capital, Paradigm
Strengths and weaknesses
Pros	National trust bank oversight from the OCC USDP and PYUSD attestations issued by KPMG from February 2025 USDG supports seven listed networks Stablecoins are backed 1:1 under Paxos's stated model	No fiat reserves or banking dependencies Smart contracts feature no blacklist or token freeze capabilities Pure ETH backing with fully transparent on-chain collateral reserves Accessible globally on Ethereum mainnet, with bridged tokens on Arbitrum, Optimism, Polygon, Avalanche, Fantom, and Solana
Cons	Redemption depends on eligibility and Paxos onboarding controls Stablecoin access varies by token and blockchain BUSD withdrawals are no longer available on the Paxos Platform Issuer controls and reserve-custody arrangements create freeze and redemption risks	Floats against the US dollar rather than holding a static $1.00 peg Collateral depositors face liquidation risk during steep ETH market drawdowns Contract vulnerability in September 2026 resulted in an exploit draining 5.94 ETH Bridged versions introduce cross-chain bridge smart-contract risks
Best for	Businesses issuing stablecoins, Institutional payment platforms, Developers building stablecoin integrations	DeFi collateral without fiat risk, Users avoiding centralized freeze capabilities, ETH holders seeking decentralized borrowing

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