Paxos vs Solstice

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

Paxos4.3/5

Feature	Paxos Visit	Solstice Visit
Ratings
Our score	4.3/5	3.5/5
User rating	No reviews yet	No reviews yet
Reserves & transparency	4.5	3.5
Peg stability	4.5	4.0
Regulation	5.0	3.0
Liquidity & chains	3.5	3.5
Redemption	3.5	3.0
Specs
Tickers	USDP, USDG, PYUSD, PAXG	USX
Pegged to	US dollar	US dollar
Backing	Cash & treasuries	Mixed
Yield-bearing	No	Yes
Regulated issuer	Yes	Not disclosed
Licenses & charters	National Trust Bank Charter (OCC), Limited Purpose Trust Charter (NYDFS), Major Payment Institution (MAS), Electronic Money Institution (FIN-FSA)	MiCA-compliant framework
Supply / market cap	Not disclosed	$201M
Chains	Ethereum, Solana, Arbitrum One, Polygon PoS, Avalanche, Ink, Mantle, Robinhood Chain, X Layer, Stellar	Solana
Reserve reports	Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC	Accountable Proof of Solvency
Redemption terms	1:1 direct fiat redemption via Fedwire, SWIFT, and CUBIX for verified institutional and enterprise platform accounts	Direct minting and redemption for institutions from $500,000; secondary market liquidity via Solana DEX pools
Issuer can freeze tokens	Yes	Not disclosed
Company
Founded	2012	2023
Headquarters	United States	—
Investors	Declaration Partners, Founders Fund, PayPal Ventures	Deus X Capital
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	Overcollateralized backing verified via automated proof of solvency Three-year positive historical track record with a 6.81 Sharpe ratio Smart contracts audited three times by Halborn and Sep2 Tiered tranches offer senior and junior first-loss options with different target yields
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	Restricted to users outside the US, UK, Singapore, Hong Kong, and China Exposed to negative funding rate conditions across basis trading venues Junior strcUSXjr tranches bear first-loss credit default exposure Fee-free instant withdrawals require staking the protocol token SLX
Best for	Businesses issuing stablecoins, Institutional payment platforms, Developers building stablecoin integrations	Solana DeFi yield seekers, Institutions allocating into tokenized credit, DeFi liquidity providers on Solana

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