USDP, issued by Paxos Trust Company, N.A., is a U.S. dollar-pegged stablecoin that represents a direct claim on segregated fiat reserves and is redeemable one-to-one for U.S. dollars (USD) [S1][S2].

Each USDP token tracks the U.S. dollar (USD) at a 1:1 peg, with reserves held 100% in cash and cash equivalents backing the token in full [S1]. As a regulated trust company, Paxos holds all reserves in only cash and cash equivalents and cannot lend out customer assets [S2]. Reserve composition reports detail cash, U.S. Treasuries and repurchase agreements down to the CUSIP [S3].

Paxos Trust Company, N.A. is a United States federally chartered trust company whose issuance of USDP is subject to oversight by the Office of the Comptroller of the Currency (OCC) [S1][S2]. The New York State Department of Financial Services (NYDFS) acts as prudential regulator and approves the examination provider [S3]. Holders of the trust-issued stablecoin have a direct legal claim to the reserves and can recoup funds at par in insolvency [S2]. Client assets are held in segregated, bankruptcy-remote accounts under the trust charter structure [S1][S2]. Redemption is 1:1 and always available at parity [S1].

USDP is issued onchain on the Ethereum and Solana public blockchain networks, with the issuer referencing Etherscan and Solscan [S1]. Tokens are minted and redeemed 1:1 against U.S. dollars (USD), with redemption always available [S1]. Paxos publishes monthly attestation reports issued by KPMG LLP under AICPA attestation standards [S3].

<Sources
  retrievedAt="2026-06-19"
  items={[
    { id: "S1", url: "https://www.paxos.com/usdp" },
    { id: "S2", url: "https://www.paxos.com/blog/why-trust-company-issued-stablecoins-are-the-safest-path-for-global-finance" },
    { id: "S3", url: "https://www.paxos.com/usdp-transparency" },
  ]}
/>


# Asset off peg methodology

## 1. Overview

The asset off peg metric is defined as the percentage deviation of a tokenized asset's daily closing market price from its designated reference (pegged) asset price. This metric is utilized to assess the stability and peg-keeping performance of stablecoins, wrapped assets, and other pegged tokens. The deviation is calculated relative to the reference price, representing either a premium or a discount in the market. Daily tracking of this metric is performed to enable the monitoring of peg stability and the identification of potential de-pegging events across various asset classes.

## 2. Data sources

- **EVM chain events**: `AnswerUpdated` events from Chainlink aggregator contracts, covering EVM-compatible chains (Ethereum, Polygon, and others)
- **Asset metadata**: Reference asset configurations and token mappings
- **External data**: End-of-day price feeds for tokenized assets

## 3. Step-by-step calculation

### Component A: Retrieve asset prices and reference mappings

- **Purpose**: Identify the daily closing price of each asset and map it to its designated reference currency
- **Logic**: Daily closing prices for each asset are retrieved from end-of-day price feeds. Each asset is mapped to its designated reference currency (such as the U.S. Dollar, Euro, or British Pound) using asset metadata. For assets pegged to the U.S. Dollar, a fixed reference rate of 1.0 is assigned. For assets pegged to other fiat currencies, the corresponding Chainlink FX feed is identified.
- **Key fields**: `asset_price` (daily closing price of the asset), `reference_asset` (the target peg currency), `fx_feed_name` (the identifier for the Chainlink FX feed)

### Component B: Resolve daily reference prices

- **Purpose**: Determine the daily USD value of the reference peg currency
- **Logic**: Daily FX rates are extracted from Chainlink oracle price feeds on EVM-compatible chains. To account for days without oracle updates, the last recorded rate for each FX feed is carried forward to construct a continuous daily time series. The daily reference price is then established by matching the asset's mapped FX feed or fixed rate with the corresponding daily rate.
- **Key fields**: `price` (the FX rate from the oracle feed), `timestamp` (the date of the rate), `reference_price` (the resolved daily reference price in USD)

### Component C: Calculate peg deviation

- **Purpose**: Compute the final percentage deviation of the asset price from its reference price
- **Logic**: The daily asset price and the resolved daily reference price are aligned by timestamp and asset identifier. The percentage deviation is calculated by subtracting the reference price from the asset price, and dividing the result by the reference price. Days where a reference price cannot be resolved are excluded from the final dataset.
- **Key fields**: `asset_off_peg` (the percentage deviation from the peg), `timestamp` (the daily grain timestamp)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

(market_price - reference_price) / reference_price

Percentage deviation of the asset price from its reference peg.

Asset off peg

Stablecoins

Users deposit funds into Paxos account and receive BUSD or USDP at a 1:1 rate.

Paxos is a financial technology company that is the principal architect of BUSD & USDP - full-reserve fiat stablecoins that bring US dollar liquidity on-chain.

Paxos is a private company registered in the US. Paxos' investors include OakHC/FT, Declaration Partners, Mithril Capital and PayPal Ventures etc.

github

twitter

etherscan

website

Stablecoin issuers

Paxos

Pax Dollar (USDP) is a U.S. dollar stablecoin issued by Paxos through Paxos Trust Company, NA.

Each token is redeemable one-for-one for U.S. dollars and is a direct claim on the issuer.

Reserves are held in segregated accounts within a bankruptcy-remote structure, attested monthly by KPMG LLP.

Institutions can mint and redeem directly with Paxos in USD after completing KYC, and holders have a contractual right to redeem at par.

Paxos Trust Company, NA is incorporated in the United States, operates under a U.S. state trust charter, and is supervised by the New York State Department of Financial Services (NYDFS).

Holder terms are governed by the law of New York in the United States.

USDP has been issued on public blockchains since September 2018 and is native to Ethereum and Solana.

Pax DollarUSDP